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Flashcards in Introduction Deck (5)
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1

What is an LLC?

LLC = a hybrid business org that:

1. is taxed like a partnership (except for single member LLC);
2. offer its owners (called members) the LIMITED LIABILITY of shareholders of a corporation; AND
3. can be run like EITHER a corporation or a partnership

2

Is there a limit to the number of owners (members) of an LLC?

There is no limit on number of owners (members)

(unlike subchapter S corp)

3

In an LLC, does anyone have to accept full personal liability for org's debts?

No

(unlike limited partnership)

4

What controls most aspects of LLC's business and management?

-LLC's are governed by statute
-LLC members may adopt "OPERATING AGREEMENT" to control most aspects of LLC's business and management

5

What is the model law that provides default set of rules for LLC's?

RULLCA of 2006

Revised Uniform Limited Liability Company Act of 2006