jdm56 Posted August 26, 2001 Share Posted August 26, 2001 OK, I fully understand that this may well be the dumbest question to appear on this BB in a coon's age, but here goes: What in the world does LLC stand for, as in "Klipsch LLC"? I keep seeing this term, and though I assume it denotes some type of business structure, I can't for the life of me figure out exactly what the intitials stand for. Someone, please enlighten my ignorant arse. ------------------ JDMcCall Quote Link to comment Share on other sites More sharing options...
Colin Posted August 26, 2001 Share Posted August 26, 2001 Prana - where are you? Guess I will have to get this one. It means Limited Liability Corporation. The hot new form of Inc. Gives companies/shareowners more of the benefits of partnerships but limits the shareholders exsposure to liability. So for example, if a HT line of yours has a massive defect rate and the angry customers are calling their lawyers ... ------------------ Cornwalls, Bottlehead 2A3 Paramours, Dynaco II, Rotel, KSW200 & LF10 Quote Link to comment Share on other sites More sharing options...
Colin Posted August 26, 2001 Share Posted August 26, 2001 It what I really menat to say: Limited Liability Company A limited liability company (LLC) is a newer type of business structure used in the U.S. that combines features of the other structures. In particular, the LLC combines the single tax treatment of a partnership with the limited liability for owners found in a corporation. Similar to a cooperative, the owners of an LLC are referred to as members. The rights and responsibilities of the members are described in an operating agreement. This agreement will provide the details as to how business decisions will be made and how voting power is allocated among members. The LLCs members are usually the ones who provide equity capital to the business. The operating agreement stipulates how earnings are to be allocated among members. In an LLC, earnings (or losses) are usually allocated according to the members level of equity investment. Similar to the owners of a corporation, liability of the LLCs members is usually limited to their level of equity investment in the business. Similar to the partners of a partnership, the earnings of an LLC are taxed once, at the member (owner) level. The LLC does have the option, however, to elect to be taxed as a general business corporation (Frederick). ------------------ Cornwalls, Bottlehead 2A3 Paramours, Dynaco II, Rotel, KSW200 & LF10 Quote Link to comment Share on other sites More sharing options...
Prana-Bindu Posted August 26, 2001 Share Posted August 26, 2001 You got to it first, Colin. I usually check things out at these BB's Mon-Fri and leave the weekends for recovery.... The great thing about LLC's is that they are very easy to tailor exactly to the level of structure you want in the control of the company. In other words, you can have a very detailed set of rules about how decisions are made, how money is spent, etc., or you can have a lot of discretion placed in people. The only substantial drawback to LLC's (last time I looked into it) is that they are not regulated uniformly by all the states. As such, certain legal consequences of the business structure in one state may differ from those in another state. It's been about a year since I looked into it, so most of the states may have adopted a uniform regulation by now. ------------------ May the bridges we burn light our way.... Quote Link to comment Share on other sites More sharing options...
jdm56 Posted August 28, 2001 Author Share Posted August 28, 2001 Gee thanks, guys! I think I may have accidentally learned something. Remember when it was just "Klipsch and Associates"? ------------------ JDMcCall Quote Link to comment Share on other sites More sharing options...
Guest BobG Posted August 28, 2001 Share Posted August 28, 2001 Initially, there weren't even any associates; just PWK and a name that made the company seem a bit larger than an one-man pursuit. The first associate to be added was a hot-shot cabinet maker. Quote Link to comment Share on other sites More sharing options...
jdm56 Posted August 29, 2001 Author Share Posted August 29, 2001 Very interesting! A true American success story. Hey, it'd make a good book: "IN MY CORNER -- THE PAUL KLIPSCH STORY". ha! ------------------ JDMcCall Quote Link to comment Share on other sites More sharing options...
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