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does LLC have stock or shareholders a limited liability company does not have stock or shareholders l.l.c is known as an unincorporated entity in legal circles because it is a creature of contract instead to the corporation that is a creature of statute but what does creature contract mean doesn't the Delaware LLC act authorize LLC does that not make them statutory the answer to these questions is that corporations have statutory formalities and hierarchies they should follow and cannot waive corporations of default rules many of which cannot be changed by the owners structure of an LLC there is not a default rule to develop the LLC structure in Delaware LLC instead the entire structure can be created for an LLC by its internal structure this contract is called the operating agreements the LLC private operating agreement takes over to set forth the ownership structure and management structure after a general notice filing with the formation jurisdiction known as a certificate of formation in Delaware this may account for a broad business purpose or a single business purpose this can provide managers with broad powers or narrow powers this may account for member liability or limit member liability for capital calls and other obligations who owns the LLC there is no stock and shareholder in an LLC instead the operating agreement has membership in two which are not certificated it's about Reich's set out in the operating agreements Delaware permits maximum flexibility of contract when negotiating and operating agreements in extremely rare cases LLC members use this opportunity to opt into the Delaware General Corporation law and establish members to create rights of corporate stockholders who vote for directors and appoint officers most Delaware LLC's have owners named as members and operators called managers whose power and duties are set out in the operating agreements this structure is much less bureaucratic than the formalities of the corporation making LLC's more popular thanks for watching please share your views and ask if you have any questions regarding this video in the comment section below weel answer you shortly also don't forget to Like and subscribe to our YouTube channel for more such videos
Thanks for your comment Elmo Blaske, have a nice day.
- Rivka Lanius, Staff Member
well i am honored tessa at stamford boy she sounds very smart she probably is she says um mark you set up my s corp okay thank you very much one of our team members and law firm associates i'm sure everybody tested so there's the tessa s corp now let's say what's tessa doing oh tess is doing consulting she's doing hair and nails she's doing drywall uh she's import exporting she just started an accounting firm she just yeah she could do all that those could be dbas they could be urls like a website she could set up trademarks does she have to set up an llc to have a subsidiary nope she doesn't have to no she might need to or want to for example let's say she's going to partner with me she's like mark let's start a restaurant in in san francisco i'm like all right so we start a restaurant well that's ordinary income i don't want to pay self-employment tax on it i already have one s corp so does tess so what are we going to set up we're going to set up an llc and my s corp is going to own part and her s corp's going to own part probably i'd own 60 and she'd own 40. but that i'm just throwing that out so if you're interested you let me know but no you these llcs are great for partnerships or she may say i want to set up this as a subsidiary because i want to sell it i have an exit strategy for that llc or it's got a lot of liability and i don't want to co-mingle it with the light the assets of the other so you can do that too tess but you do not have to have llcs oh no am i in trouble it's tasha kesha kesha kesha that's not my fault that was darren's fault because he said he said tess and i was like what it is kesha with a k is it you
Thanks Karyn your participation is very much appreciated
- Rivka Lanius
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I've studied positive psychology at Chaminade University of Honolulu in Honolulu and I am an expert in gravitational wave astronomy. I usually feel excited. My previous job was radio operators I held this position for 28 years, I love talking about cryptography and baseball. Huge fan of Chuck Schumer I practice fly-fishing and collect cheese labels.
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