Bus. Structure: LLCs and LLLPs Flashcards Preview

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Flashcards in Bus. Structure: LLCs and LLLPs Deck (11):
1

LLCs are generally treated like _________ for tax purposes?

Partnerships.

2

The "articles of incorporation" for an LLC is the...

operating agreement.

3

LLC owners are called...

members.

4

Are the number of members in an LLC restricted? Are the types of members in an LLC restricted?

No and No.

5

What types of companies cannot be LLCs?

banks and insurance companies

6

advantages to LLCs

1. Limited liability of members.
2. Avoid double taxation.
3. Flexible profit distribution.
4. Flexibility of management.

7

LLLP

limited liability limited partnership

8

An LLLP is created to...

convert an existing limited partnership previously created under state law.

9

What is the liability of a general partner in an LLLP?

The general partner in an LLLP has limited liability similar to the limited partners.

10

Do LLCs have an unlimited life?

No. LLCs have a limited life that varies from state to state and LLCs do not issue stock.

11

In an LLC, how is the member's authority determined?

By what is specified in the operating agreement.

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