Ted T. Svitavsky, LLC Ted T. Svitavsky, LLC - Attorneys and Counselors At Law
Contact UsContact Us
Driving DirectionsDriving Directions
Sitemap Sitemap
Search This SiteSearch This Site
HomeProfilePractice AreasLegal ReferenceLegal LinksStress Relief  
Legal Reference

Home / Legal Reference...

Legal Reference
Business Types: Limited Liability Company

A Limited Liability Company, or LLC, is a company that is drawn from a mixture of partnership and corporate forms of business organizations, that is they look like corporations but have different rules for tax and liability purposes. The LLC is an unincorporated business organization that contains dissolution, management and transferability provisions similar to those of a general partnership, but that can be easily altered to resemble the limited partnership or the corporate model. Generally, the LLC offers a domestic entity the tax advantages of a partnership with limited liability for all members, an advantage commonly associated with corporations. The LLC is best understood in terms of four general characteristics: limited liability; partnership tax features; the ability to choose between centralized and direct member management (almost complete internal flexibility); and creditor protection provisions.

Limited liability company statutes provide that members, like corporate shareholders, are not liable as such for the debts of the LLC. These statutes, however, do not protect members from liability for agreed contributions and excessive distributions, for members own wrongs (torts) or for the debts the members contractually assume or guarantee.

An LLC is superficially similar to a corporation in the following ways: it is a separate legal entity that is formed by filing articles of organization with the Secretary of State; it may be formed for any lawful purpose subject to exceptions for certain kinds of businesses such as banking and insurance; an LLC has regulations and an operating agreement (instead of bylaws); the owners are called members (rather than shareholders); and limited liability companies have managers (rather than directors) and the managers are chosen in a similar manner in which shareholders choose directors of a corporation.

wholesale nfl wholesale nfl,cheap nfl earrings,wholesale nfl jersey supply coupon code,cheap nfl keychains metal,wholesale nfl football t-shirts,Men's New Orleans Saints For Bare Feet Squad Stripe Tube Socks Elite Jets Youth Jersey.Chicago Bears Large Superhero Piggy Bank,Oakland Raiders WinCraft 4Ħħ x 5Ħħ Perfect Cut Helmet Decal Bryce Petty Jersey Cheap.Cincinnati Bengals iPhone 6 Classic Football Pebble Grain Case,New England Patriots Chevron Small Over Large Metal Acrylic Cut License Plate Frame,Mens Denver Broncos Von Miller Nike Navy Blue Alternate Game Jersey.San Diego Chargers ProToast MVP Toaster,Denver Broncos Mesh Dog Jersey.Women's Minnesota Vikings '47 Purple Sparkle Knit Beanie,Men's Chicago Bears Dick Butkus Pro Line Navy Retired Player Tri-Blend T-Shirt.Detroit Lions Preschool Team Logo Long Sleeve T-Shirt - Light Blue,Youth Cleveland Browns Joe Haden Nike Brown Game Jersey Ryan Fitzpatrick For Sale Cheap.Mens Washington Redskins John Riggins Mitchell & Ness Burgundy Retired Player Vintage Replica Jersey,San Francisco 49ers High Definition Helmet Keychain,Indianapolis Colts WinCraft Super Bowl XLI Champions On the Fifty Pin Cheap-New-York-Giants-Jets-Jerseys.Minnesota Vikings 8'' x 8'' Helmet Repositionable Decal Set,Kansas City Chiefs Preschool Allover Logo Flannel Pajama Pants - Scarlet,Men's Green Bay Packers Majestic Charcoal Heart & Soul III T-Shirt

An LLC is also similar to a partnership in the following ways: an LLC may elect to assume a management structure that is virtually identical to that of a general partnership with the sole exception of avoidance of unlimited liability; the operating agreements in many limited liability companies more closely approximate a partnership agreement than corporate bylaws; membership interests in an LLC are also similar to partnership characteristics in transfer of interest and dissolution; and member-managed limited liability companies follow the partnership model in that they provide that each member is an agent of the LLC for the purpose of its business and that each member has the right to posses LLC property for business purposes.

An LLC differs from a limited partnership in that all participants must actively take part in control of the business without restriction and fear of personal liability for business obligations. The source of limited liability provided by an LLC is analogous to that provided by limited partnership statutes for limited partners. A limited partnership files a certificate with the Secretary of State and the limited partners thereby obtain the shield of limited liability. Similarly, the LLC files articles of organization with a designated state official and the members of the LLC thereby obtain the shield of limited liability.

Use of this web site constitutes acceptance of the Disclaimer.
© 2003 Ted T. Svitavsky, LLC -- All Rights Reserved
Ted T. Svitavsky, LLC, 7785 Highland Meadows Parkway, Suite 203, Windsor, CO 80528