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Ray, Lawyer
Category: Legal
Satisfied Customers: 42905
Experience:  30 years in civil, probate, real estate, elder law
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I am a partner in an oilfield services LLC in Montana. The

Customer Question

I am a partner in an oilfield services LLC in Montana. The company isn't doing well due to the low prices of oil, and may soon not survive. I want to leave Montana and go to Texas with new partners and start up a similar operation there. Our business line is my lifelong profession and is all I know. Is it legal for me to own shares in one company in Montana, and to start up a fresh LLC with new people in Texas? I do not have a non-compete from the MT LLC.
Thank you in advance...
Submitted: 1 year ago.
Category: Legal
Expert:  Ray replied 1 year ago.

Hi and welcome to JA. Ray e here to help you today.

Nothing in Texas prohibits you from a new LLC and new partners.The problem would be the noncompete.Assuming it is limited in scope to say Montana then it would not be a problem.You need to check it here an see what it says.It would be very tough to enforce an out of state noncompete as you have distance and the fact you really aren't a competitor with a Montana entity.

Expert:  Ray replied 1 year ago.
Expert:  Ray replied 1 year ago.

Montana - Non-compete clauses are not enforceable except with the sale of a business or the dissolution of a partnership. Montana courts also do not generally uphold non-solicitation clauses. Still, Montana employers can still execute a Non-Disclosure Agreement to prevent the disclosure or use of confidential information and trade secrets by employees.

Expert:  Ray replied 1 year ago.

You could try for a release here from the Montana LLC and sell/give up your shares as a means to resolve it for sure.

I appreciate the chance to help you today.Please let me know if you have more follow up.Thanks again.