LIMITED LIABILITY COMPANY PRINCIPLES AND TERMINOLOGY
Since adoption of California's Limited Liability Company Act in 1994, LLCs have become increasingly popular vehicles for a wide variety of businesses. Their simplicity and pass-through tax status offer significant benefits for closely held businesses in particular. LLCs employ a set of standard terms, however, that are unfamiliar to many businesspeople. These pages will explain some of the basic concepts.
These pages are divided into three sections. The first deals with management and ownership, the second addresses LLC accounting concepts, which borrow from partnership principles and are significantly different from corporate principles, and the third gives an overview of LLC compensation strategies.
Niesar & Vestal's attorneys have extensive experience in the formation and operation of LLCs. Gerald Niesar is a co-author of a practice manual for attorneys entitled "Limited Liability Companies and Limited Liability Partnerships for the California Attorney", one of the principal reference sources on the subject for California practitioners. We would be happy to discuss specific situations in greater detail, or to further explain the benefits and drawbacks of the various legal entities available under California law. Please contact one of our attorneys for more information.
Limited liability company management and ownership terminology.
Limited liability company accounting concepts.
Limited liability company compensation strategies.