Quote: "An LLC is a hybrid legal entity having certain characteristics of both a corporation and a partnership or sole proprietorship."
This type of LLC has more than one owner and can be taxed like a partnership or S-corporation.
Formation process: Understanding the steps involved in forming a multi-member LLC, including registration with the state, drafting an operating agreement, and obtaining necessary licenses and permits.
Ownership structure: Familiarizing oneself with the fundamentals of the ownership structure of a multi-member LLC, including the distribution of profit and loss, voting rights, and the role of each member.
Liability protection: Learning about the legal protections offered by multi-member LLCs to the owners against personal liability for business debts and eventual litigation.
Taxation: Understanding how multi-member LLCs are taxed, including the impact of profits, losses, and deductions on each member's tax liability.
Management structure: Getting a grasp of the different management structures within multi-member LLCs, including managing members, officers, and managers.
Operating agreement: Reviewing the contents of an operating agreement and its role in establishing the rules and procedures governing a multi-member LLC.
Dissolution: Understanding the process of dissolving a multi-member LLC, including the roles of members, distribution of assets, and notification requirements.
Membership agreement: Familiarizing oneself with the legal requirements of a multi-member LLC membership agreement, including the rights and responsibilities of each member.
Regulatory requirements: Understanding the governmental regulations and mandatory processes required of multi-member LLCs, including annual reporting and auditing requirements.
Buyout and transfer of ownership: Learning about the procedures and legal implications of buying out or transferring ownership within a multi-member LLC.
Business structure: Comparing multi-member LLCs with other business structures like corporations and partnerships, including their legal and financial implications.
Entrepreneurial financing: Learning about the different financing options available to a multi-member LLC, including loans, equity investments, and crowdfunding.
Intellectual property: Understanding how multi-member LLCs can protect their intellectual property, including trademarks, patents, and copyrights.
Member-Managed LLC: This is the most common form of a multi-member LLC, where all members have equal rights and responsibilities in the management of the company.
Manager-Managed LLC: In this type of LLC, only one or just a few members are designated as managers, with the remaining members serving in a non-managerial capacity.
Hybrid LLC: A combination of both member-managed and manager-managed LLC, where the members can choose specific areas to manage or delegate management to a designated manager.
Partnership LLC: This is where the LLC operates similarly to a traditional partnership, with all members having equal say in management decisions.
Joint Venture LLC: This type of LLC is created for a specific business venture or project, and is dissolved once the project has been completed.
Holding Company LLC: This LLC owns and manages other businesses or investments.
Series LLC: A type of LLC where separate parts or "series" of the business can be managed and accounted for separately, while still maintaining the liability protection of a traditional LLC.
Cooperative LLC: This is an LLC formed and owned by a group of individuals or companies for mutual benefit, often used in agriculture or housing developments.
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."