re: 'Limited Liability Corporation'

sue_vaOctober 5, 2002

I am considering moving into a (for-profit)Retirement Community that is owned by two individuals operating as a LLC.

Can someone explain to me in layman's language what this means to me as a resident living there?

Thanks,

Sue

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Gina_W

Sue, an LLC is like a corporation except for some different tax and other rules affecting the LLC members.

    Bookmark   October 14, 2002 at 8:13PM
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sue_va

Gina,
Thanks for the reply. What I need to know is what the limitations are that would affect me. For instance, if they should fall on hard times and claim bankruptcy?
Sue

    Bookmark   October 15, 2002 at 12:21PM
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aileen

If they started falling on hard times, they would probably sell out. Where you would wind up is hard to say as it would depend on the terms of the sale. Sometimes, not always, the buyer is not bound by any previous agreement that the firm might have had with the residents.

You need to look into this very carefully before you commit to a long term agreement.

One thing you can count on is that since this is a for-profit business, the easiest way to make a profit is to increase fees.

    Bookmark   October 16, 2002 at 1:13PM
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sue_va

Aileen,
Thanks for the insight. I am trying to learn what I can about these things so I will know how to ask the right questions.
I will have a lawyer look over the contract if I decide to make the move. He should be able to have access to the details of their business, and can advise me.
You are right about raising fees. That is mentioned in the contract.
Any other thoughts or suggstions appreciated.
Sue

    Bookmark   October 16, 2002 at 4:06PM
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