| In 1977, Wyoming became the first state in the U.S. to | | | | The fees for completing the necessary formalities also |
| enact Limited Liability Company (LLC) legislation. This | | | | differ from state to state. Different states use |
| new type of business entity attracted a great deal of | | | | different terms, as well. The essential document for |
| attention, and other states started following Wyoming's | | | | registering an LLC is known as the 'Articles of |
| example. | | | | Organization' in most states. But a few of the states |
| After a decade, the Internal Revenue Service declared | | | | refer to it as a 'Certificate of Organization' or |
| that LLCs would be taxed on the lines applicable to | | | | 'Certificate of Formation'. Rules relating to recognition |
| partnerships. This provided the LLC a combination of | | | | of LLCs registered in other states also differ. |
| the limited liability of a corporation and tax advantages | | | | There is software available to help understand all the |
| of a partnership. The introduction of this new guideline | | | | different states' rules, but that is no substitute for |
| increased the popularity of LLCs. Now all states and | | | | uniform laws. A move for a Uniform Limited Liability |
| the District of Columbia have their own separate acts | | | | Company Act (ULLCA) began in the 1990s when the |
| covering LLCs. | | | | National Conference of Commissioners appointed a |
| But LLC requirements differ from state to state. For | | | | Drafting Committee consisting of experts in the related |
| instance, in some states single-member LLCs are | | | | fields. A draft of the Act was published in May 2005. |
| permitted. Others require a minimum of two members. | | | | This provides for multi-state recognition of LLCs and |
| (A person having interest in an LLC is called a | | | | flexible default codes. |
| 'member,' not a 'shareholder.') | | | | |