Llc Ownership Structure Options

Summary

Forming an llc in alabama allows for varying ownership percentages through an operating agreement. Professional corporations (pc) and professional limited liability companies (pllc) offer structures with shares or membership units, enabling partners to buy in. These structures impact governance, liability, and profit distribution. Amendments to corporate bylaws or operating agreements can change the number of shares or units. Consult a local attorney for detailed guidance.

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give me an example of a medical practice structure that has shareholders, with new partners buying in by purchasing shares...
In Alabama, forming a medical practice with shareholders involves creating a Professional Corporation (PC) or a Professional Limited Liability Company (PLLC). Here's an example structure:
- Professional Corporation (PC): Shareholders own shares, and new partners can buy in by purchasing shares from existing shareholders or the corporation.

- Professional Limited Liability Company (PLLC): Membership units represent ownership, and new partners can buy membership units to become part of the practice.
Would you like more information on drafting the necessary agreements or understanding the tax implications?
would this be different than just owning a percentage of the business?
Yes, owning shares in a Professional Corporation (PC) or membership units in a Professional Limited Liability Company (PLLC) can be different from simply owning a percentage of the business. Here's how:
- Shares/Membership Units: Represent ownership interest and can be bought or sold, allowing flexibility in ownership changes.
- Percentage Ownership: Directly reflects the partner's stake without the formal structure of shares or units.
These structures can affect how profits, responsibilities, and decision-making are distributed among partners. Would you like more details on how these structures impact liability or governance?
yes
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In Alabama, the structure of a Professional Corporation (PC) or Professional Limited Liability Company (PLLC) can impact governance and liability in the following ways:
- Liability Protection: PC and PLLC structures offer liability protection to their owners.
- Governance: Shareholders or members have voting rights based on shares or membership units.
- Profit Distribution: Profits are distributed according to shares or units owned.
Would you like more information on drafting operating agreements or understanding tax implications?
can the number of shares be changed?
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Yes, the number of shares in a Professional Corporation (PC) or membership units in a Professional Limited Liability Company (PLLC) can be changed. This is typically done through amendments to the corporate bylaws or operating agreement, allowing flexibility in ownership. Would you like guidance on how to proceed with these amendments?