Limited Liability Companies and Special Business Forms

This set of flashcards focuses on key terms and definitions related to Limited Liability Companies (LLCs) and special business forms as discussed in the lecture.

Limited Liability Company (LLC)

A hybrid entity that combines the limited liability of a corporation and the tax advantages of a partnership.

Members

Owners of a limited liability company (LLC), as opposed to shareholders in a corporation.

Articles of Organization

Documents that must be filed with a state agency to form an LLC, including business name and member details.

Dissociation

The process by which a member leaves an LLC, losing rights to management and acting as an agent.

Winding Up

The process of liquidating an LLC's assets and distributing proceeds after dissolution.

Foreign LLC

An LLC doing business in a state other than where it was formed.

Joint Venture

A business form where two or more entities combine efforts for a specific project, sharing profits and losses.

Operating Agreement

An optional but recommended document that outlines the management structure and operational procedures of an LLC.

Fiduciary Duties

Obligations of loyalty and care owed by managers in a manager-managed LLC to the LLC and its members.

Business Trust

A form created by a trust agreement outlining beneficiaries' interests and trustees' obligations.