Personal liability of member of limited liability company, manifest weight
A Harrisburg group said on Thursday there are flaws in its report on corporate income taxes paid by energy companies drilling for natural gas in Pennsylvania's mile-deep Marcellus shale formation. The Pennsylvania Budget and Policy Center's report, "Representation without Taxation: How Natural Gas Producers Escape Taxes in Pennsylvania," overestimated how frequently firms use their status as limited-liability companies to pay the state's 3.07 percent personal income tax, instead of the much higher 9.99 percent net corporation income tax, a center spokesman said.
The American limited liability company (LLC) is like an incorporated partnership. The LLC allows private business owners to form a company that provides protection from personal liability for business debts, without incurring a second level of corporate federal income tax on the business entity's earnings. A blended theoretical model for LLC governance is advanced that recognizes the important role that the law plays in shaping expectations of trustworthy behavior. The Mandatory Core Model permits contractual innovation within the framework of a mandatory core of minimum statutory fiduciary duties. The Mandatory Core Model creates the framework within which courts can enforce LLC operating agreements while also addressing abusive investor conduct. A purely contractarian paradigm presupp...
Most employers operate as a corporation or a limited liability company. Using such an entity generally limits owners' individual liability for the employer's obligations. Except in special circumstances, creditors of a company can look only to the assets of the company to satisfy the company's obligations and not to the owners' personal assets. Many owners do not realize, however, that the limited liability provided by a corporation or LLC will not exempt owners from personal liability for certain withheld taxes that are to be held in withholding trust accounts. In fact, liability for employee withholdings may be imposed not only on the employer, but on a broad range of people involved in the employer's business.
New York Tax Law section 1133(a) imposes personal liability for unpaid sales and use taxes upon persons required to collect tax. In a corporate context, the persons required to collect and remit sales and use taxes include any employed officers, directors, or managers who are under a duty to act for the corporation. Merely holding a corporate office does not automatically result in strict liability. The tax law does, however, impose per se or strict personal liability on any member of a partnership or limited liability company. This personal liability is imposed regardless of such partner's or member's percentage of ownership and involvement in the operation and management of the organization.
An increasing number of Americans are transferring personal ownership of residential property to trusts, limited liability corporations, limited liability partnerships, and other entities designed to protect assets or take advantage of favorable tax treatment. This article focuses on the need to properly structure the insurance policy that is used to protect the majority of residential properties -- the common homeowner insurance policy. Although often overlooked, the very broad liability coverage provided by a homeowner insurance policy serves as a critical form of asset protection. To avoid potentially disastrous gaps in coverage, individuals and their advisors must take steps to ensure that insurance policies are structured to protect the interests of all parties that have an insurab...
In general, limited liability is the primary reason why business entities are formed. The comfort of limiting liability keeps many business owners warm at night. Limited liability is granted automatically by the state with the formation of certain business entities, and most business owners would consider it a right. However, most business owners don't know that limited liability can become "un"limited - that is, lost - if you fail to follow simple formalities and guidelines. In other words, it's all about the details. What is limited liability? Limited liability restricts your legal responsibility for the company's obligations to the capital contributions or investments you are required to make. Basically, creditors of the company can look only to the assets of the company to satisfy t...
... for purposes of the litigation such that personal liability attaches to you, and your personal asset...
The retroactive piece came without any warning," said John Genz, a Wall- based partner-in-charge of the state and local tax practice at CPA firm Amper, Politziner & Mattia. "There are 'safe harbor provisions' that will generally eliminate underpayment penalties related to the retroactive increase, but it still means more trouble for people who were trying to forecast and budget their state tax liability. There are 'safe harbor provisions' that will generally eliminate underpayment penalties related to the retroactive increase, but it still means more trouble for people who were trying to forecast and budget their state tax liability. The tax hikes are likely to hurt owners of certain firms, like subchapter S companies and limited liability corporations, who pay personal income ta...
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