Question: Do the reading assignment and then look up KRS 275.520 and read its text. Then answer the questions below. Fully explain your answers: 1.What is

Do the reading assignment and then look up KRS 275.520 and read its text. Then answer the questions below. Fully explain your answers:

1.What is the taxation advantage of a LLC as opposed to a corporation?

2.What must you do to form a LLC? (Hint: Search KY Secretary of State and Explore the site.)

3.You are forming a LLC with a business associate that will engage in retail sales. You agree to run the business day to day operations. Your associate will do the accounting and take care of the LLCs finances. In what document would you address these roles?

4.Can a non-profit LLC pay a member profits or give a member an income distribution? Can a LLC pay a member/manager a salary?

5.A nonprofit LLC that has revenues of $100,000 per year pays a manager/ member a salary $99,000 per year. Do you think this would be found by a court to comply with the KY statute described in the article? Why or why not?

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