The Government's (IRS) and Court's (State and Federal) acceptance of the LLC (Limited Liabilty Company) as the premier entity to protect personal assets while enjoying "pass through" tax treatment cannot be overstated. Legally recognized in all 50 states, the LLC can best be desrcibed as a hybrid between corporate law ( limited liabilty of its members) and partnership law (pass through tax). Uses of a LLC are virtually unlimited and diverse. These include all types of real estate investments ( i.e. rentals, vacation homes, commercial, and retail properties). Other uses include investments in private placement partnerships, alternative investments, and brokerage accounts (including "self-directed IRA). Personal property such as motor vehicles, boats, and aircraft to name a few, may be titled into a LLC. Again, all income and expenses “pass through” to the individual or couple's tax return. Consequently, there is no double taxation issues as found in a C Corporation. Non-U.S. persons and companies can be members of a LLC (unlike a S-Corporation). A LLC can be Member/Managed or Manager/Managed. One may form a single member or multi-member LLC. The cornerstone of a LLC is the Operating Agreement. Somewhat like the by-laws of a corporation, this Agreement should at the minimum set forth the purpose of the LLC, the principal place of business and the capital contributions of its members. Other important sections should state the right to distributions, dissolution procedures and the company's tax classification ( sole, partnership or corporation). In other words, the LLC Operating Agreement expresses the written rights and obligations of the members to eachother and the internal rules and conduct between them.
The Cornell Group has drafted a thirty-two page Operating Agreement. We then customize the document specifically tailored for our client’s unique set of circumstances. No two agreements are exactly the same. This sets us apart from the generic, 8-10 page agreements one may purchase on the internet. Furthermore, we guarantee and stand behind our work product for as long as you keep your LLC current. A web site or other such entity selling LLC services cannot make that claim and guarantee.
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