Limited liability corporations, limited liability is the most important feature of this type of corporate filing. Provides limited liability for the people who own and the people who run the company. Changes can, however, be made within your operating agreement that states individuals acting against the interest of the organization, are removed from the umbrella of limited liability.
Mark J. Tarallo, Esq. is a partner in the corporate department at Morse, Barnes-Brown & Pendleton, PC, in Waltham, MA. Mark has extensive experience in the mergers and acquisitions area, representing both buyers and sellers, and has represented companies ranging in size from startups to multinational corporations across a wide range of industries.
Robert Finkel, Esq. is an AV-rated attorney who has more than 25 years experience as a tax and business lawyer, with his practice focused on the areas of individual and business taxation including tax controversy and tax litigation.
In this CLE class clip, Mark & Robert discuss LLC Operations.
Another reason why LLCs have become so popular in recent years, with very little effort, is that you can get pass through tax treatment. Pass through tax treatment provides a way to manage the profits and loses of the business easily. Another appeal of the LLC is ownership and capital structure flexibility.
There are no limitations as to who can own a LLC. Within the operating agreement, you can have different classes of owners, even owners from all over the world, without risking your pass through tax treatment. The types of entities you have in an organization, is essentially limitless, because the statutes give you a lot of flexibility on how you draw this up for your LLC operating agreement.