Talk:Limited liability company/Archives/2013

using the words in the definition...

The summary doesn't explain what 'limited liability' is. Perhaps there should be a parenthetical definition in there in the last paragraph or so? I can imagine younger readers getting confused, although one just needs to follow the link to figure it out. Xorm (talk) 09:56, 20 October 2010 (UTC)

Out of Date Information in United States

After reading the article, I'm editing my original answer to remove those parts of my post already address by the article content. Using wiki strike command to cross out out parts of my previous post makes it hard to read, so that's why I deleted the content instead.

LLC that have a single member and multiple members can be either member managed (members manage day-to-day business affairs) or manager managed (one or more managers can be appointed by members to manage business affairs. In a manager managed LLC form, manager can also be member depending on what is stated in the articles of organization and operating agreement, and a manager of an LLC can be authorized to appoint officers of the company. From what I understand, the ability to piece the veil depends on whether the court treats the LLC -- particularly, a single member LLC, as an "alter ego" of the owner or owners, among other things. This legal issue becomes pertinent where an owner commingled business and personal funds, operated a thinly capitalized LLC, the LLC has few or no assets that seemingly operates as a shell, commits fraudulent actions that causes losses to others, just to mention a few reasons for piercing the veil and going after the owner or owners directly. So, the LLC form in the United States does not mean that this business form is foolproof to protect an owner against personal liability.

And that's just talking about a simple LLC. If I had more time (which I don't at the moment), I would expand this section myself. But, I wanted to point out the deficiencies in this section.

The rest...

A series LLC, a business form recognized by only a few US states, features an LLC with members that are also LLCs (for example, a taxi cab management company that is an LLC with members who are taxi drivers and independent taxi cab owners who are also LLCs under their own names).

Here's a summary of what the IRS says about liability companies in case I'm unable to make it back to this article soon to expand this section. US law seemed to have changed significantly since this section was written.

Furthermore, with the suggested detail that I recommended here for this section, the LLC business form for the United States should be split off into its own article, particularly since a number of legal cases touch on how treacherous this business form can be if it is not set up or operated correctly by its members. →Lwalt ^♦ talk 23:55, 8 August 2013 (UTC)