Quote: "An LLC is a hybrid legal entity having certain characteristics of both a corporation and a partnership or sole proprietorship."
Discusses the protections offered by LLC status, as well as how to limit personal liability for company debts.
Limited liability concept: Understanding the concept of limited liability and how it relates to the formation of a limited liability company.
Types of limited liability company: Different types of LLCs, including single-member LLCs, multi-member LLCs, and series LLCs.
Formation of LLC: The process of forming an LLC, including registering with the state government and creating an operating agreement.
Management structure: Understanding the management structure of an LLC, including the roles of members and managers.
Operating agreement: The importance of having an operating agreement and its key components, such as capital contributions, profit distribution, and transferability of ownership.
Taxation of LLCs: Overview of the tax treatment of LLCs, including the default pass-through taxation and the option to elect corporate taxation.
Liability protection: The liability protections afforded to members of an LLC, including protection against personal liability for the company's debts and obligations.
Insurances: Various insurances needed to protect the LLC from different types of risks.
Assets protection: What assets can be protected and how to protect those assets from personal lawsuits or debts.
Dissolution of LLC: The process of dissolving an LLC, including distribution of assets and liabilities, and filing the required government forms.
General liabilities: Legal responsibility for debts or obligations incurred by a business.
Product liabilities: Legal responsibility for any harm caused by the products or services of a business.
Professional liabilities: Liability for losses due to errors or omissions made by professionals such as doctors, lawyers, or accountants.
Environmental liabilities: Legal responsibility for any damage caused to the environment by a company's operations.
Employer liabilities: Legal responsibility for injuries or damages suffered by employees in the course of their work.
Tax liabilities: Legal obligation to pay taxes to the government.
Limited liability: Liability of the business is limited to the assets of the business, and not the personal assets of the owners.
Shareholder protection: Shareholders in a limited liability company are only liable for the amount of their investment in the company.
Asset protection: Assets owned by the business are protected from any personal debts of the owners.
Contractual protection: Protections provided through contracts that limit liability or allow for indemnification.
Insurance protection: Protections provided through various forms of insurance coverage, including liability insurance and product liability insurance.
Statutory protection: Protections provided by law, such as exemptions from certain liabilities or protections in bankruptcy proceedings.
Quote: "LLCs are well known for the flexibility that they provide to business owners..."
Quote: "depending on the situation, an LLC may elect to use corporate tax rules instead of being treated as a partnership..."
Quote: "under certain circumstances, LLCs may be organized as not-for-profit."
Quote: "In certain U.S. states, businesses that provide professional services requiring a state professional license... may be required to form a similar entity called a professional limited liability company (PLLC)."
Quote: "The primary characteristic an LLC shares with a corporation is limited liability..."
Quote: "the availability of pass-through income taxation."
Quote: "When an LLC is formed, it is said to be 'organized', not 'incorporated' or 'chartered'..."
Quote: "its founding document is likewise known as its 'articles of organization'..."
Quote: "ownership in an LLC is represented by a 'membership interest'..."
Quote: "a document evidencing ownership rights in an LLC is called a 'membership certificate'..."
Quote: "it is more difficult to pierce the LLC veil because LLCs do not have many formalities to maintain."
Quote: "Membership interests in LLCs and partnership interests are also afforded a significant level of protection through the charging order mechanism."
Quote: "Limited liability company members may, in certain circumstances, also incur a personal liability..."
Quote: "in cases where distributions to members render the LLC insolvent."
Quote: "most American courts have held that LLC members are subject to the same common law alter ego piercing theories as corporate shareholders."
Quote: "Internal operations of an LLC are further governed by its 'operating agreement'."
Quote: "ownership measured in 'membership units' or just 'units' and at other times simply stated only as percentages."
Quote: "a 'member', rather than a 'shareholder'."
Quote: "it is a legal form of a company that provides limited liability to its owners in many jurisdictions."