| Abstract |
In recent years, every state has enacted laws enabling businesses to
operate in a new form known as the limited liability company (LLC).
Recent changes in the way the Internal Revenue Service (IRS) treats LLCs
for tax purposes has increased their appeal. Interest in using the LLC
model to organize multi-owner businesses is growing so rapidly that
some cooperative champions are wondering if this new kid on the block
will deliver a knockout blow to cooperatives. Others see it as an
exciting new tool to further cooperative enterprise This article
discusses the characteristics of LLCs, provides some background on their
evolution, compares them to other ways of structuring a business, and looks
at the challenges and opportunities they offer rural residents and
their cooperatives. |
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