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agreement was silent as to distribution and state LLC law was also silent regarding the issue, Lieberman should get no distribution for dissociation but would retain his interest in the company until dissolution occurs.70. Clark and Kent are attorneys and have formed an LLP. They take on various debts and obligations to operate the firm, including an installment contract to purchase computers and copy machines for the office. The LLP law in their state provides for liability protection for innocent partners should another partner cause liability through a tortious act. Clark is sued by Lois for civil assault and battery after he improperly touchesher during an office meeting to discuss her divorce, in which Clark is representing her. The amount of her judgment exceeds the assets of the LLP, and the LLP dissolves. What is Clark and Kent's liability for the judgment and other firm debts? 71. How may LLCs be ended?
72. Stop Now LLP manufactures brake linings and sells its product to repair and maintenance shops for use as replacements for worn brakes. Stop Now approaches Coastal Garage and offers Coastal a very good price on the brake linings. Coastal is a nationwide company, and the order would be very large. The management at Coastal is very interested in dealing with Stop Now but is concerned with the LLP's limited liability protections for Stop Now's partners. What could Coastal do to protect itself from the LLP's limited liability protections? 73. Explain how LLCs are capitalized. 74. What was the effect of the creation of the LLC on those seeking to open a new business? 75. Explain the similarities and differences, if any, with regard to the tax treatment of LLCs and LLPs.
76. What is meant by the term capitalcall?Under what circumstances might a capital call occur, and how does it affect partners? 77. John, Paul, Mark, and Luke have been operating an LLC, and according to the operating agreement, the term of the LLC is set to expire in the near future. What options do the four partners have? 78. What is the purpose of an operating agreement, and what benefits does it afford an LLC? 79. How do member-managed and manager-managed LLC management structures differ?
Chapter 15 Limited Liability Companies and Limited Liability Partnerships Key1. Owners in an LLC are called _______. AACSB: AnalyticBlooms: UnderstandDifficulty: 2 MediumLearning Objective: 15-01 Identify the sources and level of laws that govern LLC and LLP entities.Melvin - Chapter 15 #1Topic: Limited Liability Companies (LLCs)