Formation and Structure of a Limited Liability Company

Paper Summary:

This paper provides an overview of all aspects of limited liability companies (LLC). With the exception of corporate entities, the LLC is the only form of legal entity that lets all of its owners off the hook for business debts and other legal liabilities, such as court judgments and legal settlements obtained against the business. This paper studies the legal and tax-structures of LLCs, such as membership, capital contributions and legal precedents and trends regarding LLC tax structure. They paper pays close attention to the similarities and differences between LLCs and partnership arrangements.
Members of LLCs
Legal Challenges of International LLCs
Legal Trends
Capital Contributions

From the Paper:

"In some states, professionals such as lawyers, doctors, veterinarians, architects, life insurance agents, and accountants are allowed to set up LLCs. These are designated Professional Limited Liability Companies (PLLCs) and have the same characteristics as regular LLCs. A domestic LLC is one that is formed in the state where the business is conducted. A foreign LLC is one that is formed in a state other than the one where the business is being conducted. A person would choose to form a foreign LLC because another state may have more business laws than the state where the business is being conducted."

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