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Limited Liability Company (LLC) Problems

What does LLC stand for and what is the LLC definition?

LLC or Limited Liability Company is a company that is a flexible form of a company that incorporates parts of a partnership and corporation. This type of company gives the owners limited liability in most parts of the United States. Read below where thousands of Experts have answered questions pertaining to a limited liability company.

In the state of Missouri, if a person opens a LLC what can be protected and does the owner have to claim a certain amount of capitalization?

In the state of Missouri, a LLC is considered a “pass through” type company for taxes because they do not get taxed on the LLC’s earnings due to them passing it through to their members. When opening a LLC, the members are protected from any debts acquired by the LLC and there is no required capitalization.

What should be the criteria for deciding the number of units that are to be recorded for a single member Limited Liability Company?

Most generally, when a LLC is a single member, then the owner would put 100 in the unit column and transfer all shares to him/herself. Using units makes the LLC more familiar with the stock market option.

In the state of Florida, can a LLC go back from previous years taxes and add a member that was not added by mistake?

In the state of Florida, for tax or IRS purposes it is not necessary to add all members of an LLC to the tax forms, therefore as long as the member is added to the rest of the years as a contributing member, then there should be no issues. The IRS would question why the member was not added to the previous year if the LLC was to go back and amend the records.

Does a person whom is starting a home based LLC need to use a street address or can they use a P.O. box?

When a person registers a LLC, he/she must use a street address to register the LLC to. This is so that if there are any law suits to be filed the state has an actual street address to interact with. A LLC owner may also pay for and use the address of a registered agent to register the LLC.

If a member of a LLC that is currently closed is summoned to court due to a vendor suing for debts unpaid, can the vendor sue the member for the LLC’s debts?

The member might very well need to show up to the court date and show that he/she is not the company and that he/she is just merely a member. A LLC protects its members from debts that are assumed by the LLC itself. The member would need to show the documentation that proves that he/she was a member.

In the state of North Carolina, how can a 50% partner dissolve a LLC if the other 50% partner does not agree and what is the law regarding a judicial dissolution?

In most cases one 50% partner cannot usually do this due to a clause in most LLC operating agreements. The North Carolina law for a judicial dissolution is as follows,

§ 57C-6-02. Grounds for judicial dissolution-
“The superior court may dissolve a limited liability company in a proceeding by the following:
(2) A member if it is established that
(i) the managers, directors, or any other persons in control of the limited liability company are deadlocked in the management of the affairs of the limited liability company, the members are unable to break the deadlock, and irreparable injury to the limited liability company is threatened or being suffered, or the business and affairs of the limited liability company can no longer be conducted to the advantage of the members generally, because of the deadlock;
(ii) liquidation is reasonably necessary for the protection of the rights or interests of the complaining member,
(iii) the assets of the limited liability company are being misapplied or wasted; or
(iv) the articles of organization or a written operating agreement entitles the complaining member to dissolution of the limited liability company.”


It is important for a person whom opens a LLC to know all the aspects of how to do this and the proper steps to do it. The potential owners as well as the members need to know what he/she is getting into and what about the LLC that he/she may be liable for. Consulting the Experts on these matters will inform the potential owner/members of the inside workings of a LLC.
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Recent LLC Questions

  • Can single owner llc have volunteers?

    Can single owner llc have volunteers and/or unpaid interns? we train dogs to help people with disability.

  • my partner and i have had a business for around 9 years, and

    my partner and i have had a business for around 9 years, and it has not gone well as we are undercapitalized and disagree on many issues. I have been wanting out but now have assets of around 600,000 and debt of around 1,100,000 (about 1/2 is personally gauranteed. it is retail so the inventory is 80% clean. The plan if it works is to consolidate into our best store, which has huge potential. I have some liquid assets, mostly iras and equities in some properties. My Partner on the other hand has very little liquid assets.
    He recently "to get the ball rolling" presented me with with a compulsory purchase or sale agreement which I havent signed until I talk to a letter. The amount is very low. He said I would still own 49.5%, but that would have to be negotiated later on, that he would indemnify me on all debts (but he currently has few assets.
    He had given me a much more generous offer including a down payment and 6 years of payments but only in the form of a letter of intent.
    My question is why is he backing me into a corner to either buy or sell the 1/2 percent of the LLC. I feel like he plans on pocketing much of the money instead of paying to the bank or vendors, or changing the company structure.
    The company, makes a nice profit, but right now we are stretched for Inventory and are barely making it.
  • I have a partnership that we formed into an LLC at the beginning

    I have a partnership that we formed into an LLC at the beginning of June of this year. We have no investors except for ourselves. I began this venture with my partner in February of 2014. We were working for free the entire time attempting to start the program and it morphed into something completely different by June as most businesses do. I initiated all of the research for the Learning Center bringing the proposal to my partner who had previously been told that it was not going to be possible. After we had to change our initial relationship with another company that we assumed we were going to be sistering with, we went out on our own and still went forward with the formation of the Learning Center. She was the educational side, and I was the business side. She took the required tests to become the director of the Learning Center, and I did the budget and logistics of raising the building.
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    A day or so after the flooring was finished and there was no more work to be done except to move all of the learning center stuff in, she had another break and screamed and yelled at me insulting me about various things while our children were present. I walked away and removed my child from the situation. I met with her the next morning and stated that I would not tolerate yelling and most definitely would not tolerate it in front of children. I stated that someone else may be a better fit for her as an assistant teacher for the school year and maybe I should just take 25% and become a silent partner.
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    I do not want to work with this woman and have no desire to be involved in any way with her anymore besides possibly being a silent partner.
    I am so sorry for the extremely long story. Thank you for any advice that you can give me !
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