What are some common tiebreaker provisions for an LLC with equal member voting power? by @R44D
Answer by Raad Ahmed:
I have to agree with some of the other answers already provided. You should definitely set up some terms for tie breaking before you ever have a vote. This way, everybody can rely on the agreement instead of trying to come up with a plan when emotions are high.
One option that hasn’t been brought up in previous answers is the method of changing percentages of vote based on who thought of the idea that is to be voted on. So for example, the person who thought of the idea would get a slightly higher advantage than the other team members. Basically, this strategy would promote new ideas and make others have to really consider why a particular idea is not a great one. The problem here is that if you all kind of come up with an idea together, this strategy just simply doesn’t work.
The truth is, even members with equal voting rights is incredibly complicated. You may want to consider bringing on another member, even just for an incredibly low share, but to have on standby in the even that ties need to be broken. A lot of companies go through a lot of agony with an equal set up like you have here.
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