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 Limited Liability Company (LLCs)
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The limited liability company combines aspects of both a corporation and a partnership. The LLC enables shareholders to achieve limited personal liability while still retaining the pass through characteristics found in a general partnership. Typically two shareholders are required. One is a possibility in a growing number of states, but there could be liability considerations against third party claims. The LLC under normal circumstances is responsible for business debts. One exception would be where a member shareholder personally acts as a guarantor of debt.
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| The LLC is controlled by its members in proportion to profit ratios as established in the Articles of Organization or the firm’s operational agreement. Similar to a partnership, new member shareholders must be approved through partners holding a majority interest in the LLC. Typically, an LLC can exist until the death or withdrawal of a member. Even at that juncture, if members holding a majority interest decide to do so, it is possible for the LLC to continue. The formalities are very similar to that of a corporation in that Articles of Organization must be filed, with the subsequent drafting of an Operating Agreement. |
| From a liability standpoint, LLCs are more like a corporation, but from a tax perspective, they are more similar to a Partnership. |
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| [Go to LLC Order Center] |
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* Pennsylvania Incorporations Plus+ is a service of Gibson & Perkins, P.C, 200 E. State St., Ste. 105, Media, PA 19063 - a Delaware County law firm with a focus on business transactions, real estate, taxation, estate planning, estate administration and succession planning.
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| Copyright © 2006-2008 Pennsylvania Incorporations Plus. All Rights Reserved. Disclaimer |
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