Author Question: What are the important features of a limited liability company? ... (Read 143 times)

jake · **on:** Jun 24, 2018

What are the important features of a limited liability company? Explain.

Question 2

In University and Community College System of Nevada v. Farmer, in order to remedy the racial imbalance, the University of Nevada instituted the:
A) minority bonus policy.
B) Wonderlic Personnel Test.
C) Bennett Comprehension Test.
D) Negative Role Model policy.

mathjasmine · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

There are two important features of an LLC. They are:
1. Tax Classification

Many businesspeople favor the LLC, because the LLC offers flexibility in choosing how the business will be taxed. Since the LLC is created under state statutes, the federal government has not established a tax classification for the LLC. Instead, the LLC can elect to be taxed as a partnership, a corporation, or a sole proprietorship, depending on the number of members.

2. Limited liability for members

Another valuable feature of the LLC is limited liability, the limitation of personal liability for the members. The personal assets of the members are shielded from contractual and tortious liabilities incurred by the LLC, and generally, the members' losses are limited to the amount they invested in the LLC.

Answer to Question 2

A