SMG LA 245 Lecture Notes - Lecture 22: C Corporation
Document Summary
20. 3 limited liability companies: llc offers the limited liability of a corporation and the tax status of a flow-through entity. 20. 3b flexibility: llcs can have members that are corporations, partnerships, or nonresident aliens, and have different class of stock, are not required to hold annual meetings or maintain a minute book. 20. 3c transferability of interests: existing members of an llc cannot transfer their ownership rights, nor can the llc admit a new member without the unanimous permission of the other members. 20. 3d duration: llcs automatically dissolved upon withdrawal of a member, current trend in state laws is to permit an llc to continue in operation even after a member withdraws. 20. 3h legal uncertainty: members of an llc may find themselves in the unhappy position of litigating issues of law which, although well established for corporations are not yet clear for llcs.
