Law 415 Essay

1491 Words Apr 10th, 2013 6 Pages
Business Entities, Laws, and regulations Paper

Contemporary Business Law/421

Business Entities, Laws, and Regulations Paper
Choosing the right business entity is as critical to entrepreneurs as it is to professionals. In the United State, people have the right to chose, from a long list of options, a business entity that will meet their particular needs. Found within that long list of options are two business entities that have met the needs of many entrepreneurs as well as professional. These two business entities, known as Limited Liability Company (LLC) and Limited Liability Partnership (LLP), have forming, control, taxation, and liability components, which must be fully understood in an effort to identify their advantages as
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Some states required their LLCs to have no less that two persons; other states are satisfied with just one person (Cheeseman, 2010).
Articles of Organization. To form an LLC, a document that contains the articles of organization must be composed and “filed with the appropriate states office” (Cheseman, 2010, p. 268). This document must contain the name of the limited liability company, the mailing address of its principal office, the period of its duration, and the name and address of its manager (Cheeseman, 2010)
Control and Ownership Interest
Operating Agreement. The members of an LLC can, if the chose to so, compose an operating agreement that set and regulate the different parameters of conduct expected from the business, its members and managers (Cheeseman, 2010). Such an agreement, between the members of an LLC, would make it clear to all that the LLC will be either a member-managed LLC or a manager-managed LLC. If member managed, the members of the LLC “would have the right to manage the LLC” as they saw fit (Cheeseman, 2010, p. 271). If manager managed, the members of the LLC would “delegate their management rights” to a designated manager or managers Cheeseman, 2010, p. 271).
Ownership Interest. An LLC can, in accordance with its operating agreement, provide its members with evidence of their ownership interest. Such evidence is usually given to a member in a certificate of interest. This

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