States are enacting legislation that permits creation of a new business entity known as the Limited Liability Company (LLC). The drafters of this legislation expressly intended to provide business planners with an alternative to corporations and partnerships. Part II of this article acquaints readers with the more prominent provisions of existing LLC legislation. Part III addresses the criteria used to establish partnership status for federal income tax purposes, and recent success in securing that status for LLCs. While the LLC's pass-through taxation is virtually assured, concern persists about whether other states will respect its other chief characteristic, limited liability. Part IV analyzes past policy objections expressed by courts when denying other entities limited liability and explains how subsequent changes in the laws of corporations and limited partnerships should render those objections obsolete as they pertain to LLCs.
Sylvester J. Orsi,
The Limited Liability Company: An Organizational Alternative for Small Business,
70 Neb. L. Rev.
Available at: http://digitalcommons.unl.edu/nlr/vol70/iss1/6