Limited Liability Company (llc)

The LLC is а relatively new type of hybrid business structure that is now permissible in US. It is designed to provide the limited liability features of a corporation and the tax efficiency and operational flexibility of a partnership. Formation of LLC is more complex and formal than that of a general partnership.

The owners are members, and the duration of the LLC is usually determined when the organization papers are filed. The time limit can be continued if desired by a vote of the members at expiry date (the time of expiration). LLC's must not have more than two of the four characteristics that define corporations:

1. Limited liability to the extent of assets;

2. Continuity of life;

3. Centralization of management; and

4. Free transferability of ownership interests.

VOCABULARY

permissible - дозволенный

featureo - собенность, признак, свойство

tax efficiency - налоговая эффективность

operational flexibility - гибкость операций

formation - образование, создание

duration - срок действия

to file papers - подавать документы на регистрацию

vote - голосование

expiry date - дата окончания

transferability - передача (имущества, права и т. п.)

Assignment. Write a short essay on:

1. Sole Proprietorships, their advantages and disadvantages.

2. Partnerships, their types, their advantages and disadvantages.

3. Corporations, their advantages and disadvantages.

4. The purpose of a Board of Directors in a Corporation.

5. Major duties of a Board of Directors in a Corporation.