| Personal Liability of Owners: |
Limited,
except for an individual's own professional errors |
| Federal Income Tax Treatment: |
Single
level of taxation, if properly structured |
| Permitted Number of Owners: |
No
restriction, but need at least 2 for partnership tax treatment |
| Permitted Types of Owners: |
No
restrictions |
| Permitted Classes of Ownership
Interests: |
Multiple
classes are permitted |
| Duration of Entity: |
May
be perpetual |
| Special Allocation of Tax Items: |
Permitted
if partnership tax treatment applies |
| Centralized Management: |
Entity
can be managed by either managers or members |
| Transferability of Interests: |
Usually
limited by articles or regulations; may be limited by
state law |
| Necessary Documentation: |
Articles
of Organization; regulations; minutes |
| Regulation of Issue and Sale of
Interests: |
Federal
and state securities law; state LLC laws |
