Limited Liability Companies (LLC's)

Question 1

LLC Formation

Answer 1

Pass through taxing AND flexible management
*Designed to promote freedom of contract

FILING: Must file articles of organization (AO), and pay the required fee.

NAME: Must contain the words “limited liablity company” or the initials “LLC”

MANAGEMENT: May be run by managers or members, but members control the LLC unless otherwise provided in the AO.

Question 2

Professional LLC (PLLC or PLC)

Answer 2

Members and managers must be licensed to practice in some state, but professional services may be rendered only by persons who are licensed in Georgia

Question 3

LLC Liability

Answer 3

• Limited liability for members, except for their own torts

- LLP’s and LLC’s provide equivalent protection

Question 4

Vicarious Liability for owners in GP, LLP, LP, LLC

Answer 4

1. GP- Joint and Several
2. LLP- None
3. LP- Joint and several for general partners (unless LLLP) NONE for limited partners
4. LLC- None