Alternative Business Forms Flashcards
1
Q
Closely-Held
A
Few S/H Unanimous to eliminate formalties Reasonable restriction on transferability Veil wont be pierced Taxed under partnership status
2
Q
Professional Corporation
A
Articles indicate P.C.
Owners are licensed professionals
Designate ONE profession
Limited Liability
3
Q
LLC
A
Hybrid between Corp. & Partnership
Owners have same rights and limited liability as shareholders plus partnership tax treatment
4
Q
LLC Control
A
Members may choose to manage or delegate team of managers
5
Q
LLC Liquidity
A
Limit on transferability
Consent of all members
6
Q
LLC Life
A
Not in perpetuity
Will dissolve upon consent of all members or otherwise provided
