Chapter 38: Limited Liability Companies and Special Business Forms
Advantages of the LLC
limited liability, flexibility in taxation, management and foreign investors (flexibility it offers)
Business Trust
A business form created by a written trust agreement that sets forth the interests of the beneficiaries and the obligations and powers of the trustee(s). A business trust is similar to a corporation in many respects. Beneficiaries are not personally liable for the debts or obligations of the business trust
Joint Stock Company
A business form similar to a corporation in some respects (transferable shares of stock, management by directors and officers, perpetual existence) but otherwise resembling a partnership
Limited Liability Company (LLC)
A hybrid form that combines the limited liability aspects of the corporation and tax advantages of a partnership
Cooperative
An association organized to provide an economic service, without profit, to its members. A cooperative can take the form of a corporation or a partnership.
Syndicate
An investment group that undertakes to finance a particular project; may be organized as a corporation or as a general or limited partnership
Joint Venture
An organization created by two or more persons in contemplation of a limited activity or a single transaction; similar to a partnership in many aspects
Special Business Forms
Joint venture, syndicate, joint stock company, business trust, cooperative
Disadvantages of the LLC
State LLC statues are not uniform
Operating Agreements
members of an LLC can decide how to operate the various aspects of the business by forming an operating agreement
Members
owners of the LLC have limited liability