valuation clause LLC

How to Structure a 50/50 LLC Operating Agreement in Texas to Prevent Deadlock and Member Disputes

How to Structure a 50/50 LLC Operating Agreement in Texas to Prevent Deadlock and Member Disputes

A 50/50 Texas LLC can avoid most deadlocks by hardwiring at least 6 decision-and-exit mechanisms into its operating agreement—tie‑breaker authority, notice/cure, escalation, buy‑sell, capital call rules, and dissolution/valuation terms. Texas law gives members broad freedom of contract, but silence in the agreement often turns a simple dispute into expensive litigation. This article shows Texas-specific clauses […]

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Depiction of a Judge and Attorneys Engaged in a Motion Hearing

How to Draft a Texas LLC Operating Agreement That Protects Majority Owners Without Triggering Minority Oppression Claims

Texas LLC owners can reduce minority oppression exposure by using an operating agreement that (1) defines fiduciary duties and voting rights and (2) builds in fair, contractual exit and valuation terms. In Texas, “minority oppression” is not a standalone cause of action, but disputes still arise through fiduciary-duty, fraud, and shareholder-type remedies. This article explains

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