Limited Liability Company
Profit and loss sharing
Based on capital invested and work performed by each member
Cooperative
Business structure where owners are called members
Voting rights
Determined by an operating agreement, not necessarily based on patronage
Four methods of doing business in the United States
Different ways to structure a business
Articles of organization
Document filed with the Secretary of State to establish an LLC
Operating agreement
Document that determines profit sharing, voting rights, and other aspects
Cooperatives
Fit within the four methods of doing business
Limited Liability Company (LLC)
Hybrid business structure combining partnership and corporation characteristics
At least two members
Minimum requirement to form an LLC
No restrictions on role
Owners are free to become involved in the management of the company
Limited personal liability
Protection from personal liability for company debts and obligations
Capital
Provided by members to a cooperative
Chapter 2 Review Questions
Questions to assess understanding of the material
Death, entry, or withdrawal of a member
Requires restating the nature of the relationship between members
Expense at startup
Significant legal work and filing of documents required
Single-tax treatment
Taxation similar to a partnership
Liability
Unlimited responsibility for debts and obligations