Limited Liability Company Case Study

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Pros of Limited Liability • Limited liability: This means that the owners and shareholders personal property are protected when the LLC is bankrupt or sued. Also, in some cases of fraud and illegal acts the courts will pierce the corporate veil that protects the member or members so that they become personally liable for such acts. However, it was said that since there are little to no precedent in this area of such law it is difficult to determine under which circumstance the veil would be removed. • Unlimited amount of members- You must have more than one owner otherwise you can be taxed as a sole proprietor. Members do not necessarily need to be citizens of the country and can an owner that is another owner of another LLC. Also, LLC are not required to have a board of directors or shareholder meetings, less paperwork and record…show more content…
• Lack of case law: The LLCs are a new concept of a business structure so, there are much case law that exist and it is very important for predictability. For example, if you know a court ruled in a certain way you can act accordingly to protect yourself, but since there are few cases laws there is more vulnerability that can cause you a great amount of liability. • Transfer fees: Share transfers for LLCs that are not listening on the Stock Exchange of Trinidad and Tobago attract Stamp duty payable to the Board of Inland Revenue on an ad valorem basis at the rate of $5.00 per $1000. A fixed stamp duty of $25.00 is paid on transfer to a nominee. Consequently, shares listed on the Stock Exchange can be transfer without being liable to stamp duty unless they do not follow the rules of the exchange, and they would have to pay event duty which is 5% of the market value of the

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