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OnDemand Course

Limited Liability Companies: Common Traps to Avoid

Find out how to ensure your LLC meets the requirements necessary to avoid these common pitfalls.

Many limited liability companies have no company/operating agreements. Others have agreements which are sloppily written, don't match what the company actually does, or contain land mines. The laws regulating creditors' ability to invade LLCs and vote their members' interests is also constantly changing. Careful drafting is essential to avoid this threat. This topic helps attorneys and businesspeople to understand the risks of forming and operating an LLC. It explains how to create a company/operating agreement that clearly defines the roles and duties of members and managers and minimizes their liability. It discusses how to avoid the perils of veil piercing, and how to use well-drafted assignability and charging order provisions to foil judgment creditors. It explains complex tax provisions that, if not understood, can jeopardize how LLC profits and losses are distributed and taxed.

99 minutes
Course Exam
Certificate of Completion
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Why Lorman?

Over 35 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Agenda

Formation Traps

  • Avoiding a Mismatch Between Company and State of Creation
  • Avoiding Management Structures That Don't Work
  • Avoiding Ambiguity and Mistake in Documenting Contributions and Distributions
  • Getting in and Getting out - Transfer Provisions

Liability Traps

  • Perils of Single Member LLCs
  • Veil-Piercing Mistakes
  • Actions by Members and Managers That Create Personal Liability
  • Protecting Managers and Members by Limiting Duties and Providing Indemnities
  • Foiling Judgment Creditors - Non-Encumbrance, Assignability, and Charging Order Provisions
  • Staying Clear of the SEC Securities Provisions

Tax Traps

  • Choosing Tax Status for LLCs
  • Investor Members Versus Operating Members
  • Ordinary Income Asset Trap (Section 751)
  • Family Partnership Trap (Section 704E)
  • Special Allocations
  • Section 754 Elections
  • Other Tax Issues
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Why Lorman?

Over 35 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Credits

OnDemand Course

Applications have not yet been submitted for Delaware, Idaho, Kentucky, Maine, Ohio, Oklahoma, South Carolina, and Wyoming CLE for this course. However, if you are interested in obtaining CLE for any of the listed states or have any additional credit questions please email us at [email protected] or call us at 866-352-9540.

This course was last revised on December 2, 2020.

Call 1-866-352-9540 for further credit information.

  • AR CLE 1.5
     
  • This course has been approved for 1.5 hours of CLE by the Arkansas CLE Board.
     
  • CA MCLE 1.5
     
  • Lorman Business Center, LLC. is a State Bar of California approved MCLE sponsor and this course qualifies for 1.5 CLE hours of participatory credit.
     
  • WA CLE 1.5
     
  • This program has been approved by the Washington State Board of Continuing Legal Education for 1.5 hours of A/V credit under the Law & Legal Procedure category.
     

To earn each credit Lorman offers through the OnDemand learning platform, you need to watch 100% of the program. Also, for certain credits you will need to fulfill additional requirements which will be displayed on the "credits" tab when viewing the course.

This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

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Why Lorman?

Over 35 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Faculty

Gretta C. Spendlove

Gretta C. Spendlove

Dentons Durham Jones Pinegar P.C.

  • Shareholder with Dentons Durham Jones Pinegar P.C.
  • Practice emphasizes commercial real estate, corporate law, business transactions, and trademarks
  • Conducts regular seminars and workshops in fields of real estate contracts, land use and title law, easements and boundary disputes, commercial financing and leasing, and use of LLCs for real estate development
  • Member, CCIM, NAIOP, CREW, ULI, ACG
  • J.D. degree, University of Arizona
  • Can be contacted at 801-415-3000 or [email protected]
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Why Lorman?

Over 35 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

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Pay once and get a full year of unlimited training in any format, any time!

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Additional benefits include:

  • State Specific Credit Tracker
  • All-Access Pass Course Concierge

Questions? Call 877-296-2169 to speak with a real person.

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Product ID: 406560
Published 2020
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