Question

1. What are the main three differences between a limited liability company and a corporation?
2. Explain the transferability of shares in limited liability companies.
3. Assume that you are a partner of a limited liability company,

1. director wants to make the same busines in Salihli on the weekends, is it possible? Explain.
2. in which cases right to information and inspection of the partner can be restricted?
3. after one of your partner’s death, his son comes to your company as a new partner, but you don’t want to work with him. explain the legal status.

4. What do you understand from circular type general assembly resolutions?
5. What is dissociation compensation?
6. Are partners liable of company’s private and public debts in limited liability companies. Explain shortly.

Answer 1

Particulars	Limited Liability Company	Corporations
Liability	Combines limited liability protection with a pass-through tax structure.	Owners / shareholders have limited personal liability for business related debts.
Taxation	IRS rules allow LLCs to choose between being taxed as partnership or corporation.	Separate taxable entity, corporate profits among owners and corporation.
Maintenance	The easiest entity to maintain with the least amount of formal annual requirements.	Meetings are required to maintain corporate status. Stock may be sold to raise capital.
Management	An LLC has a flexible management structure. The entity can be managed by its members or a group of managers, and any member may act as the LLC's manager. The LLC may also elect to have no distinction between an owner and a manager of the business. Due to its flexible nature, LLC management is less formal which may make it an ideal entity for some entrepreneurs.	A corporation's management structure is much stricter. A corporation must have a formal structure with a Board of Directors handling the management responsibilities of generating profits for the shareholders. Corporate officers are assigned to handle the day-to-day operations of the business. The shareholders are considered owners of the corporation but remain separate from business decisions and daily operations of the corporation (except for approval of major corporate decisions).