BLAW 2301 Lecture Notes - Lecture 10: Sole Proprietorship, Benefit Corporation, General Partnership
Document Summary
Llc offers the limited liability of a corporation and the tax status of a partnership. General llc concepts will be discussed below, but you should check state laws for specifics. Limited liability: members are no personally liable for the debts of the llc. Formation: a charter and an operating agreement, charter short, basic info like name an address, operating agreements sets out the rights and obligations of the owners, called members. Flexibility: unlike s corporations, llcs can have members that are corporations. Transferability of interest: unless operating agreement provides otherwise, the llc must obtain the unanimous permission of the remaining members before transferring their ownership rights. Going public: once goes public, it loses its favorable tax status and is taxed as a corporation. Changing forms: corporation to an llc may be considered a sale of all corporation assets by irs. Check of teaching and llc go into one bank account.
