Frequently Asked Questions

What information is required to be listed in the articles of organization if a corporation is a member of an LLC?

When a corporation is a member of a Limited Liability Company (LLC), certain information is required to be listed in the articles of organization. The Revised Uniform Limited Liability Act, as outlined in Section 102, allows corporations to be members of an LLC. This can be achieved by owning full or partial stock or interest in the LLC. The articles of organization, which are filed with the Secretary of State (SOS), must include the corporation's business name, address, and ownership percentage. This is a crucial step in the formation of an LLC, as it provides a clear record of the corporation's involvement and interest in the LLC. It's important to note that while corporations can be members of an LLC, they cannot act as members of a Professional Limited Liability Company (PLLC). This is because PLLCs are required to only have licensed professionals in the field in which the company plans to offer services as members. Furthermore, LLCs cannot own any shares in an S Corporation (S Corp) due to the IRS's strict shareholder requirements for S Corps. Only single-member LLCs may act as a shareholder in an S Corp, but LLCs with multiple members are not allowed.