Limited liability company

A limited liability company (denoted by L.L.C. or LLC) is a legal form of business company offering limited liability to its owners. It is similar to a corporation, and is often a more flexible form of ownership, especially suitable for smaller companies with a limited number of owners. Unlike a regular corporation, a limited liability company with one member may be treated as a disregarded entity, so the member is often singled-out as a person performing the actions of the LLC.

Choosing to operate by member management creates a flat member or partnership structure. Choosing manager management creates a two-tiered management structure potentially convertible into a corporation, with the attendant tax consequences. LLCs are organized with a document called the “articles of organization”, or “the rules of organization” specified publicly by the state; additionally, it is common to have an “operating agreement” privately specified by the members. The operating agreement is a contract among the members of an LLC governing the membership, management, operation and distribution of income of the company....
 

I. Прочитайте текст (без словаря).

II. Перепишите и письменно переведите на русский язык следующие предложения. Помните, что объектный и субъектный инфинитивные обороты соответствуют придаточным предложениям.  Подчеркните Complex Object, Complex Subject.

1. The director considers the funds to be insufficient.

2. In the short run, the greatest gain for many developing countries is likely to come from improvements in the testing, certification, and accreditation institutions to underpin greater enforcement capacity.

3. Shareholders are assumed to know what income they would have.

4. The managers know the economic benefits of distributions of profits to influence members’ decision to invest.

5. Major imbalances in the world trading environment persisted during 2004 and will be likely to continue to play a large role in 2005–06.

6. The scientists expect this effect to be relatively small.

7. Since that time the market share of these larger companies does not seem to have increased.

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1. The two principle models of companies were considered to be the joint stock company and the public limited company, the limited liability company offering limited liability to its owners.

2. Choosing manager management creates a flexible management structure potentially convertible into a corporation, and avoids double taxation.

3. In order to simplify the analysis we can consider two firms, one being representative of high-cost producers and the other of low-cost producers.

4. A new board of directors been elected, the entity’s income decreased greatly.

5. The limited liability company has a number of advantages, with much less administrative paperwork and pass-through taxation being the most attractive advantages.

6. A country wishing to limit its population may discourage immigration and encourage emigration.

7. The goods having been loaded, the dockworkers left the port.

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1. They would have avoided double taxation, if they had organized a limited liability company last year.

2. If the debts and obligations of the firm increase, we will run into problems next year.

3. Many disputes can be avoided if all members of the grouping adhere strictly to an identical tariff classification.

4. If a franchise tax was levied on company after the 1^st of January, we should form a new corporation and merge into it.

5. Because national authorities often fear a loss of sovereignty if they allow foreign operators in the market, a regional legal framework and effective enforcement mechanisms are necessary for successful implementation.

6. If trade costs were insignificant, the propensities to trade nationally and internationally would be equal.

7. If the system had been perfected, we should have applied it for new calculation.

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VI. Ответьте на вопросы по тексту:

1. What is a limited liability company?

2. What is the structure of the Limited Liability Company?

3. Why can the Limited Liability Company lose its tax advantage?

4. What are the advantages of the limited liability company?

5. What does limited liability mean?