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Is an LLC superior to a Corporation?

A) Why is an LLC superior to a Corporation (either S or C)?

B) What is Federal Preemption? Discuss when it applies? (hint dual regulation and no
preemption)-give examples of different types....

1. Discrimination on the Basis of National Origin.

Ace Tennis Co.( has more than 15 employees) hires only employees who speak English. Does this policy illegally discriminate against Hispanic job applicants under Title Vll ? Discuss Disparate Impact....

2. A man was convicted of rape by a jury and immediately jumped to his death through a courtroom window. The parent's of the man sued his lawyer for negligence, claiming that the lawyer's negligent defense of their son, caused their son's death.

State and explain the elements of a cause of action for negligence and state which element is missing from the facts above, explain your answer....

Hint: even if you assume that the attorney was negligent in his defense of the man
( one of the elements), still can't win because another element is missing....

3. The plaintiff and the defendant entered into a two-year oral contract concerning a management employment position in an automobile dealership in Hawaii. The plaintiff, relying on the oral promises of the defendant, moved to Hawaii from California. After being employed for 2 months, the plaintiff was released from employment. He sued the defendant, who raised the defense of the statute of frauds.
Outcome ?
Discuss what is the statute of frauds and if it applies. Even if we can't sue for breach of contract, is the employee out of options? Hint: equitable remedies.

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A) Why is an LLC superior to a Corporation ( either S or C )?
Unless LLC opts to be taxed as a corporation, its capital gains are taxed in the hands of member. Profits are taxed personally at the member level, in addition, the LLCs are treated as separate entities separate from their members. So, there is no double taxation that a corporation is subjected to. The administration work with regards to filing of forms, records and compliance are lesser than that of a corporation. The LLC has a choice of being taxed as a C Corporation, S Corporation, sole proprietor or partnership. This facility is not available to a corporation.

B) What is Federal Preemption? Discuss when it applies? (hint dual regulation and no
preemption)-give examples of different types....
Federal Preemption means the displacing effect that the federal law has if there is a conflict with a state law. In other words the if there is conflict of law, the federal law prevails. This has been guaranteed by The Supremacy Clause (Article VI, Section 2) of the US Constitution.
This law applies when there is conflict between a federal law and a state law. Examples of this are conflicts where it is impossible to apply the state and federal law. (See: Florida Lime & Avocado Growers, Inc. v. Paul, 373 U.S. 132 (1963), and Egelhoff v. Egelhoff, 532 U.S. 141 (2001))

1. Discrimination on the Basis of National Origin.

Ace Tennis Co.( has more than 15 employees) hires only employees who speak English. Does this policy illegally discriminate against Hispanic job applicants under Title Vll ? Discuss Disparate Impact....

Disparate impact is employment policy or practice which appears to be fair, adversely impacts against an ethnic, racial or gender group. This is a practice that on the face of its is impartial but discriminates against persons of a particular race. In this case hiring employees that only speak English adversely impacts Hispanic job applicants. Disparate impact has several examples. For example, there may be educational requirements for a job, subjective procedures such as unstructured interviews, ...

Solution Summary

LLC is compared to a Corporation in this solution.

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