Introduction Flashcards
1
Q
What is an LLC?
A
LLC = a hybrid business org that:
- is taxed like a partnership (except for single member LLC);
- offer its owners (called members) the LIMITED LIABILITY of shareholders of a corporation; AND
- can be run like EITHER a corporation or a partnership
2
Q
Is there a limit to the number of owners (members) of an LLC?
A
There is no limit on number of owners (members)
unlike subchapter S corp
3
Q
In an LLC, does anyone have to accept full personal liability for org’s debts?
A
No
unlike limited partnership
4
Q
What controls most aspects of LLC’s business and management?
A
- LLC’s are governed by statute
- LLC members may adopt “OPERATING AGREEMENT” to control most aspects of LLC’s business and management
5
Q
What is the model law that provides default set of rules for LLC’s?
A
RULLCA of 2006
Revised Uniform Limited Liability Company Act of 2006
