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.