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1 Cards in this Set
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[A] Defined
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• Combines liability shield of corporation with federal tax classification of partnership
• Organized under a state statute which allows LLC to exist as a legal person and provides governing rules (many are default rules) • Comes into existence thru filing of Articles of Organization • Full corporate-like liability shield to protect owners against automatic, vicarious liability for debts of enterprise • Agreement among members determines LLC’s governance – called “Operating Agreement” • Management may be by owners or delegated to others • Death or bankruptcy terminates company, unless other members consent to continue • Members’ interest is transferable but transferee can’t participate in management absent consent of other members • Duration frequently limited to 30 yrs. |
