Instructions
Bill Snyder has come to you again. As stated earlier, he has decided to start his new landscaping business as a limited liability company; however, he does not know how to proceed. He wants you to direct him on how to start an LLC. He lives in Colorado.
Write a paper explaining to Bill:
What is an LLC —How is it different or similar to other legal formalizations such as a Sub-S corporation?
Explain again the advantages and disadvantages of having an LLC.
Describe the process of forming an LLC, including but not limited to where to go to get the first process of organization. Refer him to the video of the Secretary of State Office that you have seen. Re-explain the process set forth in Cheeseman (2019) and the video.
Explain duration of the LLC, capital contributions, dividing profits and losses, and the liability of an LLC on its members.
Bill indicated that they may have more than one member in his company. Explain to Bill the differences between member management and a manager-managed LLC.
Use outside sources to draft a sample operating agreement for the LLC. Set the agreement at the end of your paper as a part of your submission, or as a separate document to submit. (This section will not be in APA format, as it needs to be in legal format). See instructions below.
Finally, discuss the fiduciary duties of members of an LLC.
Your paper must be six to seven pages long (double spaced, not including the cover and reference pages). Support your paper with a minimum of three sources in addition to your textbook, and format your paper according to current APA requirements. Your response must include a biblical perspective. Use Scripture to support your response.
Note: For item 6: the drafting of an Operating Agreement for an LLC, you should format the paper in a legal format, consisting of three to four pages or more if necessary. If you need to supply additional facts to draft the operating agreement, do so. Use outside sources to ascertain the proper format and contents.
Reading:
Cheeseman, H. R. (2019). Business law (10th ed.).
Chapter 43: Administrative Law and Regulatory Agencies
Review Chapter 39: Limited Liability Companies
Viewing:
Video: How to Form a Colorado LLC Limited Liability Company (3:21)
Read the following verses: 1 Corinthians 12:12-24 and Exodus 18:21.
In 1 Corinthians 12:12-24 we are given a great deal of guidance, which includes business organizational associations and leadership.
Also, in Exodus 18:21 we are told the type of individuals to seek from all the people. Among those are individuals who believe God and are trustworthy, and we are told to place them in positions of authority.
And finally, Proverbs 29:2: “When the righteous increase, the people rejoice, but when the wicked rule, the people groan” (The Holy Bible, English Standard Version, 2001).
These are to be balanced against an admonition in 2 Corinthians 6:14, “Do not be unequally yoked with unbelievers. For what partnership has righteousness with lawlessness? Or what fellowship has light with darkness?” (The Holy Bible, English Standard Version, 2001).
Obviously, we need to be careful and discerning in our business associations and our dealings with others in business to reflect the Lord Jesus in all that we say and do. What instances can you remember where your association with business organizations or its leadership were not only dysfunctional, but did not honor God and caused a problem in your own life. What advice would you give to others about that experience from a biblical perspective?
Scripture quotations are from the ESV® Bible (The Holy Bible, English Standard Version®), copyright © 2001 by Crossway, a publishing ministry of Good News Publishers. Used by permission. All rights reserved. May not copy or download more than 500 consecutive verses of the ESV Bible or more than one half of any book of the ESV Bible
