Table of Contents
Detailed Analysis
1560.01. INTRODUCTION
A. Defining the Limited Liability Company
B. Defining the Limited Liability Partnership
C. Advantages Over Other Forms of Business Entities
1. Advantages Over General Partnerships
2. Advantages Over Limited Partnerships
3. Advantages Over S Corporations
4. Advantages Over C Corporations
D. Disadvantages of LLPs and LLCs
1. Marginal Income Tax Rates
2. Passive Activity Rules
3. Cash Method of Accounting
4. Taxable Year
5. Fringe Benefits
6. Section 708 Terminations
7. Unrelated Business Taxable Income
1560.02. FEDERAL TAX CLASSIFICATION OF LLCS AND LLPS
A. Introduction
B. Centralized Management
C. Limited Liability
D. Free Transferability of Interest
E. Continuity of Life
F. Revenue Procedure on Classification (Pre-1997)
1. LLC Classification
2. Corporate Characteristics
a. Continuity of Life
b. Free Transferability of Interests
c. Centralized Management
d. Limited Liability
G. Post 1996 Classification Criteria
1. Introduction
2. History
3. Application
H. State Classification
1560.03. CONSEQUENCES OF CLASSIFICATION
A. Treatment of LLC or LLP Classified as a Partnership
1. Formation of the LLC
B. State Taxes Imposed on LLCs
1. Obligation of LLC to File State Returns
2. Obligation of Members to File Federal and State Returns
3. Special Rules for Nonresident Corporate Members
4. Treatment of Nonresident Members - Corporate Members
5. Percentage of Member's Share of LLC Factors
6. Treatment of LLC's Nonbusiness Income
C. Treatment of Individual Nonresident Members
1. Source of Income
2. Investment LLCs
3. Composite Returns
4. Enforcement Mechanisms
5. Taxation of Resident Members
6. Taxation of Membership Interest Disposition
a. Corporate Partners
7. LLCs Classified As Associations and Taxable As Corporations
a. Formation
1560.04. UNRESOLVED LLC TAX ISSUES
Introductory Material
A. Passive Loss Requirements
B. Accounting Methods
1. Enterprise
2. Syndicate
3. Examples of Previous Private Letter Rulings
C. One Member LLCs
D. Tax Matters Partner
E. Conversions
F. At Risk Rules
G. Liquidation Payments
H. Anti–Abuse Rules
I. Use of LLCs In Estate Planning
J. "Series" LLCs
1560.05. SELF-EMPLOYMENT TAXES
1560.06. UNRELATED BUSINESS TAXABLE INCOME ("UBTI")
1560.07. COMPARISON OF LLC ACTS
A. Alabama - Ala. Code § 10-12-1, et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distribution in Kind
a. Distributions
b. Interim Distributions
c. Restrictions on Distributions
d. Right to Distribution
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Derivative Action
16. Statute of Limitations
17. Foreign LLC's Name
18. Registration Requirement
19. Professional LLCs
20. Fees
21. State Tax Treatment
a. Federal Conformity
b. Filing Requirements
B. Alaska - Alaska Stat. § 10.50.00 et seq.
1. Name
2. Nature of Business
3. Formation
4. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
5. Operating Agreement
6. Voting
7. Distributions
a. Interim Distributions
b. Distribution in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
c. Statute of Limitations
15. Derivative Action
16. Foreign LLC's Name
17. Registration Requirement
18. Professional LLCs
19. State Tax Treatment
20. Fees
C. Arizona - Ariz. Rev. Stat. Ann. § 29-601 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distribution Upon a Member's Withdrawal
c. Distribution in Kind
d. Right to Distribution
e. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Nature of Membership Interest
12. Assignment of Membership Interest
a. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
c. Statute of Limitations
15. Derivative Action
16. Foreign LLC's Name
17. Registration Requirement
18. Professional LLCs
19. State Tax Treatment
20. Fees
21. Estate Planning
C1. Arkansas - Ark. Stat. Ann. § 4-32-101 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distribution in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
10. Liability for Contributions
11. Profits and Losses
12. Withdrawal
13. Nature of Membership Interest
14. Assignment of Membership Interest
a. Right of Assignee to Become a Member
15. Judgment Creditors
16. Dissolution
a. Judicial Dissolution
17. Distribution of Assets
18. Statute of Limitation
19. Derivative Action
20. Foreign LLC's Name
21. Registration Requirement
22. Professional LLCs
23. Statute of Limitations
24. Fees
25. State Tax Treatment
D. California - Cal. Corp. Code § 17000 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distribution in Kind
c. Right to Distributions
d. Restriction on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
15. Distribution of Assets
16. Statute of Limitations
17. Derivative Action
18. Foreign LLC's Name
19. Registration Requirement
20. Professional LLCs
21. Costs
22. State Tax Treatment
E. Colorado - Colo. Rev. Stat. § § 780-101 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distribution in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liabilities to Third Parties
9. Contributions to Capital
10. Liability for Contribution
11. Profits and Losses
12. Withdrawal
13. Nature of Membership
a. Assignment of Membership Interest
b. Rights of Assignee to Become a Member
14. Judgment Creditors
15. Dissolution
a. Judicial Dissolution
b. Administrative Dissolution
c. Distribution of Assets
16. Statute of Limitations
17. Derivative Action
18. Foreign LLC's Name
19. Registration Requirement
20. State Tax Treatment
21. Fees
F. Connecticut - Conn. Corp. Act § § 93-267
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Property Ownership
7. Voting
8. Distributions
a. Interim Distributions
b. Distribution in Kind
c. Right to Distributions
d. Restrictions on Distributions
9. Liabilities to Third Parties
10. Contributions to Capital
11. Profits and Losses
12. Withdrawal
13. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become Member
14. Judgment Creditors
15. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
16. Statute of Limitations
17. Derivative Actions
18. Foreign LLC's Name
19. Registration Requirements
20. Professional LLCs
21. State Tax Treatment
22. Fees
G. Delaware - Del. Code Ann. tit. 18, § 101 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Property Ownership
7. Voting
8. Distributions
a. Interim Distributions
b. Distribution in Kind
c. Right to Distributions
d. Restrictions on Distributions
9. Liability to Third Parties
10. Contributions to Capital
a. Liability for Contributions
11. Profits and Losses
12. Withdrawal
13. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
14. Judgment Creditors
15. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
16. Statute of Limitations
17. Derivative Action
18. Foreign LLC's Name
19. Registration Requirement
20. Professional LLCs
21. State Tax Treatment
22. Fees
23. Taxation
G1. District of Columbia - D.C. Code Ann. § 29-1301 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distribution in Kind
c. Right to Distributions
d. Restrictions on Distributions
8. Liabilities to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Statute of Limitations
16. Derivative Action
17. Foreign LLC's Name
18. Registration Requirements
19. Professional LLCs
20. State Tax Treatment
21. Fees
H. Florida - Fla. Stat. § 608 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distribution in Kind
c. Right to Distributions
d. Restrictions on Distributions
8. Liabilities to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distributions of Assets
15. Derivative Action
16. Statute of Limitations
17. Foreign LLC's Name
18. Registration Requirement
19. State Tax Treatment
a. Federal Conformity
b. Apportionment
20. Fees
I. Georgia - Ga. Code Ann. § 14-11-100 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distributions in Kind
c. Right to Distributions
d. Restrictions on Distributions
8. Liabilities to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Statute of Limitations
16. Derivative Action
17. Foreign LLC's Name
18. Registration Requirement
19. State Tax Treatment
20. Fees
I1. Hawaii - Hawaii Uniform Limited Liability Company Act S 2723
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distribution in Kind
a. Distributions
b. Interim Distributions
c. Restrictions on Distributions
d. Right to Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Derivative Actions
16. Statute of Limitations
17. Foreign LLC's Name
18. Registration Requirement
19. Professional LLC's
20. Fees
21. State Tax Treatment
J. Idaho - Idaho Code § 53-601 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distributions in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contribution
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Statute of Limitations
16. Derivative Action
17. Foreign LLC's name
18. Registration Requirement
19. State Tax Treatment
20. Fees
K. Illinois - Ill. Rev. Stat. chap. 805, ¶ 180-1-1 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distributions in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to the Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Derivative Action
16. Foreign LLC's name
17. Registration Requirement
18. Statute of Limitations
19. State Tax Classification
20. Professional LLCs
21. Fees
L. Indiana - Ind. Code § 23-18-1-1 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distribution in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liability to the Third Parties
9. Capital Contribution
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Derivative Action
16. Statute of Limitations
17. Foreign LLC's Name
18. Registration Requirement
19. Fees
20. State Tax Treatment
L1. Iowa - Iowa Code Ann. § 490A.100 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distribution
a. Interim Distributions
b. Restrictions on Distributions
c. Distribution in Kind
d. Right to Distribution
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Derivative Action
16. Statute of Limitations
17. Foreign LLC's Name
18. Registration Requirement
19. Professional LLCs
20. Fees
21. State Tax Treatment
M. Kansas - Kan. Stat. Ann. § 17-7662 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distribution in Kind
c. Rights to Distribution
d. Restrictions on Distributions
8. Liabilities to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Statute of Limitations
16. Derivative Action
17. Foreign LLC's Name
18. Registration Requirement
19. Fees
20. State Tax Treatment
21. Professional LLCs
N. Kentucky - Ky. Rev. Stat. Ann. § 275.001, et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distributions in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Statute of Limitations
16. Derivative Action
17. Foreign LLC's Name
18. Registration Requirement
19. Conversions
20. Professional LLCs
21. State Tax Treatment
22. Fees
O. Louisiana - La. Rev. Stat. Ann. § 12:1301 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distributions in Kind
c. Rights to Distribution
d. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
15. Statute of Limitations
16. Distribution of Assets
17. Derivative Action
18. Foreign LLC's Name
19. Professional LLCs
20. Registration Requirement
21. State Tax Treatment
22. Fees
P. Maine - Me. Rev. Stat. Ann. tit. 31 § 601 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distributions in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liabilities to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Statute of Limitations
16. Derivative Actions
17. Foreign LLC's Name
18. Registration Requirement
19. State Tax Treatment
20. Fees
Q. Maryland - Md. Code Ann., Corp. and Assoc. § 4A-101 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Restrictions on Distributions
c. Distributions in Kind
d. Right to Distribution
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Statute of Limitations
16. Derivative Action
17. Foreign LLC's Name
18. Registration Requirement
19. Professional LLCs
20. Fees
21. State Tax Treatment
Q1. Massachusetts - Mass. Gen L. ch. 156C, § 1 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Restrictions on Distributions
c. Distributions in Kind
d. Right to Distribution
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Statute of Limitations
16. Derivative Action
17. Foreign LLC's Name
18. Registration Requirement
19. Professional LLCs
20. Fees
21. State Tax Treatment
R. Michigan - Mich. Comp. Laws § 450.102 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distributions in Kind
c. Right to Distributions
d. Limitation on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Derivative Action
16. Professional LLCs
17. Foreign LLC's Name
18. Registration Requirement
19. State Tax Treatment
20. Fees
S. Minnesota - Minn. Stat. § 322B.01 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Indemnification
b. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distributions In Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Statute of Limitations
16. Derivative Action
17. Foreign LLC's Name
18. Registration Requirement
19. Fees
20. State Tax Treatment
T. Mississippi - Miss. Code Ann. § 79-29-101 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distribution In Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Statute of Limitations
16. Derivative Action
17. Foreign LLC's Name
18. Registration Requirement
19. Professional LLCs
20. State Tax Treatment
21. Fees
U. Missouri - Mo. Rev. Stat. § 351.015 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Standard of Care
6. Indemnification
7. Reliance on Information
8. Voting
9. Distributions
a. Interim Distributions
b. Distribution in Kind
c. Right to Distribution
d. Restrictions on Distributions
10. Liability to Third Parties
11. Contributions to Capital
a. Liability for Contributions
12. Profits and Losses
13. Withdrawal
14. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
15. Judgment Creditors
16. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
17. Statute of Limitations
18. Derivative Action
19. Foreign LLC's Name
20. Registration Requirement
21. State Tax Treatment
22. Fees
V. Montana - Mont. Code Ann. § 35-8-1 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distributions in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Statute of Limitations
16. Derivative Action
17. Foreign LLC's Name
18. Registration Requirement
19. Professional LLCs
20. Fees
21. State Tax Treatment
V1. Nebraska - Neb. Rev. Stat. § 21-2601 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distribution in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Derivative Action
16. Statute of Limitations
17. Foreign LLC's Name
18. Registration Requirement
19. Professional LLCs
20. Fees
21. State Tax Treatment
W. Nevada - Nev. Rev. Stat. § 86.010 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distribution in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Statute of Limitations
16. Derivative Action
17. Foreign LLC's Name
18. Registration Requirement
19. Professional LLCs
20. State Tax Treatment
21. Fees
X. New Hampshire - N.H. Rev. Stat. § 304-C:1 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distributions in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Statute of Limitations
16. Derivative Action
17. Foreign LLC's Name
18. Registration Requirement
19. Professional LLCs
20. Fees
21. State Tax Treatment
Y. New Jersey - N.J. Stat. Ann. § 42:2B-1 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distributions in Kind
c. Right to Distributions
d. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
10. Profits and Loss
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Statute of Limitations
16. Derivative Action
17. Foreign LLC's Name
18. Registration Requirement
19. Professional LLCs
20. Fees
21. State Tax Treatment
Z. New Mexico - N.M. Stat. Ann. § 53-19 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distribution in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liabilities of Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Statute of Limitations
16. Derivative Action
17. Foreign LLC's Name
18. Registration Requirement
19. Professional LLCs
20. Fees
21. State Tax Treatment
AA. New York - N.Y. Ltd. Liab. Co. Law § 101 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distributions in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of a Membership Interest
b. Rights of Assignee
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Statute of Limitations
16. Foreign LLC's Name
17. Registration Requirement
18. Professional LLCs
19. Fees
20. State Tax Treatment
BB. North Carolina - N.C. Gen. Stat. § 57C-1-01 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Standard of Care
a. Indemnification
b. Reliance on Information
6. Voting
7. Distributions in Kind
a. Right to Distribution
b. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Administrative Dissolution
c. Distribution of Assets
15. Statute of Limitations
16. Derivative Action
17. Foreign LLC's Name
18. Registration Requirement
19. Professional LLCs
20. Fees
21. State Tax Treatment
CC. North Dakota - N.D. Cent. Code § 10-2-01 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distribution in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Distribution of Assets
15. Statute of Limitations
16. Derivative Action
17. Foreign LLC's Name
18. Registration Requirement
19. Professional LLCs
20. State Tax Treatment
DD. Ohio - Ohio Rev. Code Ann. § 17-05-01 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distributions in Kind
c. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
c. Distribution of Assets
15. Statute of Limitations
16. Derivative Action
17. Foreign LLC's Name
18. Registration Requirement
19. Professional LLCs
20. State Tax Treatment
EE. Oklahoma - Okla. Stat. tit. 18 ch. 32, § 2000 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Restrictions on Distributions
c. Distributions in Kind
d. Right to Distribution
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Derivative Action
16. Statute of Limitations
17. State Tax Treatment
18. Foreign LLC's Name
19. Registration Requirement
20. Professional LLCs
21. Fees
FF. Oregon - Or. Rev. Stat. § 63.001 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distribution in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
a. Expulsion
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Statute of Limitations
16. Derivative Action
17. Foreign LLC's Name
18. Registration Requirement
19. Professional LLCs
20. Fees
21. State Tax Treatment
GG. Pennsylvania - Pa. Stat. § 8901 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distributions in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liabilities to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Rights of Assignee to Become a Member
c. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Statute of Limitations
16. Derivative Action
17. Foreign LLC's Name
18. Registration Requirement
19. Professional LLCs
20. State Tax Treatment
21. Fees
HH. Rhode Island - R.I. Gen. Laws § 7-16-1 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distributions In Kind
c. Right to Distributions
d. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Derivative Action
16. Foreign LLC's Name
17. Registration Requirement
18. Statute of Limitations
19. Fees
20. State Tax Treatment
HH1. South Carolina - S.C. Code Ann. § 3-44-1 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distribution
a. Distributions in Kind
b. Interim Distributions
c. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Derivative Action
16. Statute of Limitations
17. Foreign LLC's Name
18. Registration Requirement
19. Fees
20. State Tax Treatment
II. South Dakota - S.D. Codified Laws Ann. § 47-34-1 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Restrictions on Distributions
a. Interim Distributions
b. Distribution in Kind
c. Right to Distribution
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Derivative Action
16. Statute of Limitations
17. Professional LLCs
18. Foreign LLC's Name
19. Registration Requirement
20. State Tax Treatment
JJ. Tennessee - Tenn. Code Ann. § 48-201-101 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distributions in Kind
c. Right to Distributions
d. Restrictions on Distributions
8. Liabilities to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
15. Statute of Limitations
16. Distribution of Assets
17. Derivative Action
18. Foreign LLC's Name
19. Registration Requirement
20. Professional LLCs
21. State Tax Treatment
22. Fees
KK. Texas - Tex. Corp. Code tit. 32, art. 1528n, et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Right to Distribution
a. Distribution in Kind
b. Limitation on Distributions
c. Interim Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Rights of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Derivative Action
16. Professional LLCs
17. Foreign LLC's Name
18. Registration Requirement
19. Statute of Limitations
20. Fees
21. State Tax Treatment
LL. Utah - Utah Code Ann. § 48-2c-101 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Distributions
a. Distribution in Kind
b. Right to Distribution
c. Restrictions on Distributions
7. Liability to Third Parties
8. Capital Contributions
a. Liability for Contributions
9. Profits and Losses
10. Withdrawal
11. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
12. Judgment Creditors
13. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
14. Statute of Limitations
15. Derivative Action
16. Foreign LLC's Name
17. Registration Requirement
18. Fees
19. Taxation
20. Professional LLCs
LL1. Vermont - § § Vt. Stat. Ann. § § 11-3001 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distribution
a. Distributions in Kind
b. Interim Distributions
c. Restrictions on Distributions
d. Right to Distribution
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Derivative Action
16. Statute of Limitations
17. Foreign LLC's Name
18. Registration Requirement
19. Professional LLCs
20. Fees
21. State Tax Treatment
MM. Virginia - Va. Code Ann. § 13.1-1000 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distributions in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Rights of Assignee to Become a Member
c. Judgment Creditors
13. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
14. Statute of Limitations
15. Derivative Action
16. Foreign LLC's Name
17. Registration Requirement
18. Professional LLCs
19. State Tax Treatment
NN. Washington - Wash. Rev. Code § 25.15 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distributions in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of LLC Interest
b. Rights of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Distribution of Assets
15. Statute of Limitations
16. Derivative Action
17. Foreign LLC's Name
18. Registration Requirement
19. Professional LLCs
20. Fees
21. State Tax Treatment
OO. West Virginia - W. Va. Code § § 31B-1-101 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distributions in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liabilities to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
13. Assignment of Membership Interest
a. Right of Assignee to Become a Member
14. Judgment Creditors
15. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
16. Statute of Limitations
17. Derivative Action
18. Conversion
19. Foreign LLC's Name
20. Registration Requirements
21. Professional LLCs
22. Fees
23. State Tax Treatment
PP. Wisconsin - Wis. Stat. § § 183.01 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distributions in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liabilities to Third Parties
9. Contributions to Capital
a. Liability for Contributions
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Rights of Assignee to Become a Member
13. Judgment Creditors
14. Dissolution
a. Judicial Dissolution
b. Administrative Dissolution
c. Distribution of Assets
d. Statute of Limitations
15. Foreign LLC's Name
16. Registration Requirement
17. Professional LLCs
18. Fees
19. State Tax Treatment
QQ. Wyoming - Wyo. Stat. § 17-15-01 et seq.
1. Name
2. Nature of Business
3. Formation
4. Operating Agreement
5. Management
a. Standard of Care
b. Indemnification
c. Reliance on Information
6. Voting
7. Distributions
a. Interim Distributions
b. Distribution in Kind
c. Right to Distribution
d. Restrictions on Distributions
8. Liability to Third Parties
9. Contributions to Capital
a. Liability for Contribution
10. Profits and Losses
11. Withdrawal
12. Nature of Membership Interest
a. Assignment of Membership Interest
b. Right of Assignee to Become a Member
13. Judgment Creditor
14. Dissolution
a. Judicial Dissolution
b. Distribution of Assets
15. Derivative Action
16. Statute of Limitations
17. Foreign LLC's Name
18. Registration Requirement
19. Professional LLCs
20. State Tax Treatment
21. Fees
Working Papers
Item Description Sheet
Worksheet 1 Treasury Regs. § § 301.7701-1 to -3 "Check-the-Box" Regulations
Worksheet 2 Table of IRS Rulings Classifying Foreign LLCs-Prior to"Check-the-Box" Regulations
Worksheet 3 [Reserved.]
Worksheet 4 [Reserved.]
Worksheet 5 States Permitting Single Member Limited Liability Companies
Worksheet 6 [Reserved]
Multistate Taxation of Transparent Entities: State Tax Implications of a New Federal Tax Concept
Worksheet 8 Disregarded Entities: A Disappearing Act for Sales Tax?
Bibliography
Bibliography