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59-456: Euroleague Commercial Assets S.A. (ECA), founded on 8 March 2006, is the limited liability company , acting pursuant to Luxembourg law, with registered office in rue Beaumont 17, L-1219 Luxembourg. It is governed by the statutes and the resolutions of the governing bodies, the owners of which are the clubs participating in the EuroLeague and a number of leagues. The General Assembly is

118-409: A corporation , LLCs are required to register in the states they are "conducting (or transacting) business". Each state has different standards and rules defining what "transacting business" means, and as a consequence, navigating what is required can be quite confusing for small business owners. Simply forming an LLC in any state may not be enough to meet legal requirements, and specifically, if an LLC

177-513: A voluntary organization , common-interest association , association , or society ) is a group of individuals who enter into an agreement, usually as volunteers , to form a body (or organization ) to accomplish a purpose. Common examples include trade associations , trade unions , learned societies , professional associations , and environmental groups . All such associations reflect freedom of association in ultimate terms (members may choose whether to join or leave), although membership

236-437: A " shareholder ". Additionally, ownership in an LLC is represented by a "membership interest" or an "LLC interest" (sometimes measured in "membership units" or just "units" and at other times simply stated only as percentages ), rather than represented by " shares of stock " or just "shares" (with ownership measured by the number of shares held by each shareholder). Similarly, when issued in physical rather than electronic form,

295-479: A bank account, enter into contracts (rent real estate, hire employees, take out an insurance policy), or sue or be sued. In France , all voluntary associations are non-profit. They may count as unincorporated ( association non-déclarée ) or incorporated ( association déclarée ) and are created in terms of and governed by the Waldeck-Rousseau Act 1901. This is why association loi (de) 1901

354-577: A broad and original form of nonprofit organizations, and have existed since ancient history. In Ancient Greece , for example, there were various organizations ranging from elite clubs of wealthy men ( hetaireiai ) to private religious or professional associations. In preindustrial societies, governmental administrative duties were often handled by voluntary associations such as guilds . In medieval Europe, guilds often controlled towns. Merchant guilds enforced contracts through embargoes and sanctions on their members, and also adjudicated disputes. However, by

413-454: A business formed as an LLC rather than a corporation. An LLC with either single or multiple members may elect to be taxed as a corporation through the filing of IRS Form 8832. After electing corporate tax status, an LLC may further elect to be treated as a regular C corporation (taxation of the entity's income prior to any dividends or distributions to the members and then taxation of the dividends or distributions once received as income by

472-717: A common interest, although this term is not widely used or understood. Voluntary associations may be incorporated or unincorporated ; for example, in the US, unions gained additional powers by incorporating. In the UK, the terms voluntary association or voluntary organisation cover every type of group from a small local residents' association to large associations (often registered charities ) with multimillion- pound turnover that run large-scale business operations (often providing some kind of public service as subcontractors to government departments or local authorities). Voluntary association

531-478: A document evidencing ownership rights in an LLC is called a "membership certificate" rather than a "stock certificate." In the absence of express statutory guidance, most American courts have held that LLC members are subject to the same common law alter ego piercing theories as corporate shareholders. However, it is more difficult to pierce the LLC veil because LLCs do not have many formalities to maintain. As long as

590-621: A personal liability in cases where distributions to members render the LLC insolvent. The first state to enact a law authorizing the creation of limited liability companies was Wyoming in 1977. The law was a project of the Hamilton Brothers Oil Company , which sought to organize its business in the United States with liability and tax advantages similar to those it had obtained in Panama . From 1960 to 1997,

649-416: A similar entity called a professional limited liability company ( PLLC ). An LLC is a hybrid legal entity having certain characteristics of both a corporation and a partnership or sole proprietorship (depending on how many owners there are). An LLC is a type of unincorporated association , distinct from a corporation. The primary characteristic an LLC shares with a corporation is limited liability , and

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708-472: A transaction in the name of the association takes responsibility for that transaction, just as if it were that individual's personal transaction. There are many countries where the formation of truly independent voluntary associations is effectively proscribed by law or where they are theoretically legally permitted, but in practice are persecuted; for example, where membership brings unwelcome attention from police or other state agencies. Voluntary groups are

767-480: A variety of governance and protective provisions for the corporation and its shareholders, most states do not dictate detailed governance and protective provisions for the members of a limited liability company. In the absence of such statutory provisions, members of an LLC must establish governance and protective provisions pursuant to an operating agreement or similar governing document. Voluntary association A voluntary group or union (also sometimes called

826-474: Is a co-operative which is usually founded on one person-one vote principle and distributes its profits according to the amount of goods produced or bought by the members. Associations may take the form of a non-profit organization or they may be not-for-profit corporations ; this does not mean that the association cannot make benefits from its activity, but all the benefits must be reinvested. Most associations have some kind of document or documents that regulate

885-422: Is also used to refer to political reforms, especially in the context of urbanization, granting individuals greater freedoms to associate in civil society as they wished, or not at all. In many jurisdictions no formalities are necessary to start an association. In some jurisdictions, there is a minimum for the number of persons starting an association. Some jurisdictions require that the association register with

944-400: Is formed in one state, but the owner (or owners) are located in another state (or states), or an employee is located in another state, or the LLC's base of operations is located in another state, the LLC may need to register as a foreign LLC in the other states it is "transacting business". For U.S. federal income tax purposes, an LLC is treated by default as a pass-through entity. If there

1003-518: Is in force in South Australia , allows for the creation of a legal entity able to buy and sell land and in general, enter into legally binding contracts. Many clubs and societies begin life as an unincorporated body and seek to attain incorporated status to protect its members from legal liability and in many cases to seek government financial assistance only available to an incorporated body. Clubs and societies wishing to incorporate must meet

1062-400: Is not necessarily voluntary in the sense that one's employment may effectively require it via occupational closure . For example, in order for particular associations to function effectively, they might need to be mandatory or at least strongly encouraged, as is true of trade unions . Because of this, some people prefer the term common-interest association to describe groups which form out of

1121-502: Is only one member in the company, the LLC is treated as a "disregarded entity" for tax purposes (unless another tax status is elected), and an individual owner would report the LLC's income or loss on Schedule C of his or her individual tax return. Thus, income from the LLC is taxed at the individual tax rates. The default tax status for LLCs with multiple members is as a partnership, which is required to report income and loss on IRS Form 1065. Under partnership tax treatment, each member of

1180-483: Is subjoined to their name, except in the Alsace - Moselle area, which is governed by local law in this regard (the area was German in 1901), and are therefore called association loi (de) 1908 . If the association responding to defined criteria, like social or medical help, for example, they can be declared "public utility association" ( association d'utilité publique ) by French authorities. Associations created under

1239-486: Is the United States -specific form of a private limited company . It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation . An LLC is not a corporation under the laws of every state; it is a legal form of a company that provides limited liability to its owners in many jurisdictions. LLCs are well known for

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1298-466: Is to be treated under the laws. In the United States, voluntary associations which were incorporated were "pre-eminent" in collective action. In California , during the 1980s, then Los Angeles County district attorney Ira Reiner decided to use California's unincorporated associations law to attack street gangs and the habit of their members of tagging graffiti in public spaces, in an attempt to abate vandalism and to recover cleanup costs. He sued

1357-616: The English trust law case Conservative and Unionist Central Office v Burrell (1981): "unincorporated association" [means] two or more persons bound together for one or more common purposes, not being business purposes, by mutual undertakings, each having mutual duties and obligations, in an organisation which has rules which identify in whom control of it and its funds rests and upon what terms and which can be joined or left at will. In most countries, an unincorporated association does not have separate legal personality , and few members of

1416-478: The Ministry of Justice . Under English law , an unincorporated association consists of two or more members bound by the rules of a society which has, at some point in time, been founded. Several theories have been proposed as to the way that such associations hold rights. A transfer may be considered to have been made to the association's members directly as joint tenants or tenants in common . Alternatively,

1475-494: The 1800s, merchant guilds had largely disappeared. Economic historians have debated the precise role that merchant guilds played in premodern society and economic growth. In the United Kingdom, craft guilds were more successful than merchant guilds and formed livery companies which exerted significant influence on society. A standard definition of an unincorporated association was given by Lord Justice Lawton in

1534-402: The 1901 act have a significant amount of freedom in their internal operation, such as management or authorized members. The German Civil Code sets out different rights and rules for an unincorporated association ( nicht eingetragener Verein ) with legal identity ( Vereine , art. 21–79 BGB ) versus an incorporated association ( eingetragener Verein ) with full legal personality , which

1593-811: The Associations Law, 1980. An amutah is a body corporate, though not a company. The amutah is successor to the Ottoman Association which predated the State of Israel, and was established by the now-superseded 1909 Ottoman Law on Associations, based on the French law of 1901. An amutah must register with the Rasham Ha’amutot ('Registrar of Amutot'), under the purview of the Rashut Hata’agidim ('Corporations Authority') of

1652-485: The Crown as bona vacantia . This conclusion has also been suggested where the association dissolves because only one member remains, although this has been doubted by some commentators who believe the last members should be entitled to the rights. Scots law on unincorporated associations is essentially the same as English law. Each state sets its own laws as to what constitutes an unincorporated association and how it

1711-711: The Delaware Limited Liability Company Act provides that the managers and controlling members of a Delaware-domiciled limited liability company owe fiduciary duties of care and loyalty to the limited liability company and its members. Under the amendment (prompted by the Delaware Supreme Court's decision in Gatz Properties, LLC v. Auriga Capital Corp ), parties to an LLC remain free to expand, restrict, or eliminate fiduciary duties in their LLC agreements (subject to

1770-654: The ECA body of representation and governance, where the ECA shareholders meet together with the associated clubs, which is responsible for the general supervision of the issues regarding the EuroLeague and for approving the Bylaws, as stipulated in the EuroLeague Club Licensing Rules. In addition, it ensures the coordination of the clubs and has the authority to make decisions and confer functions on

1829-401: The EuroLeague and EuroCup clubs participate, as well as for commercialising the properties of these competitions (to deal with the promotion and development of the commercial activities linked to these competitions), in accordance with what is established in the bylaws. EP has designated the company Euroleague Entertainment & Services, S.L.U. , controlled by ECA, as the body responsible for

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1888-577: The General Assembly), and exercise any further functions conferred on it by the General Assembly. The Shareholders Executive Board will consist of the following members, elected by the General Assembly, for a three-year term of office: Euroleague Properties S.A. (EP), founded on 3 August 2009, is the limited liability company, controlled by ECA, responsible for managing and organising the EuroLeague and EuroCup competitions in which

1947-554: The LLC and the members do not commingle funds, it is difficult to pierce the LLC veil. Membership interests in LLCs and partnership interests are also afforded a significant level of protection through the charging order mechanism. The charging order limits the creditor of a debtor-partner or a debtor-member to the debtor's share of distributions, without conferring on the creditor any voting or management rights. Limited liability company members may, in certain circumstances, also incur

2006-576: The LLC seriously and enacted their own LLC statutes. By 1996, all 50 states and the District of Columbia had LLC statutes. In 1995, the IRS came to the conclusion that the widespread enactment of LLC statutes had undermined the Kintner regulations, and in 1996 it promulgated new regulations establishing a so-called "check the box" (CTB) entity classification election system that went into effect throughout

2065-405: The LLC, as is the case for all partners of a partnership, annually receives a Form K-1 reporting the member's distributive share of the LLC's income or loss that is then reported on the member's individual income tax return. On the other hand, income from corporations is taxed twice: once at the corporate entity level and again when distributed to shareholders. Thus, more tax savings often result if

2124-575: The Shareholders Executive Board . The General Assembly constituted the Shareholders Executive Board and granted it the duties to submit proposals and recommendations to the General Assembly, monitor and control the observance of the resolutions made by the General Assembly, take urgent measures when there is no time to convene a meeting of the General Assembly (subject to the subsequent ratification of

2183-522: The United States on January 1, 1997. LLCs are subject to fewer regulations than traditional corporations, and thus may allow members to create a more flexible management structure than is possible with other corporate forms. As long as the LLC remains within the confines of state law, the operating agreement is responsible for the flexibility the members of the LLC have in deciding how their LLC will be governed. State statutes typically provide automatic or "default" rules for how an LLC will be governed unless

2242-420: The United States, is sometimes different. When an LLC is formed, it is said to be "organized", not "incorporated" or "chartered", and its founding document is likewise known as its " articles of organization ", instead of its " articles of incorporation " or its "corporate charter". Internal operations of an LLC are further governed by its " operating agreement ". An owner of an LLC is called a "member", rather than

2301-630: The association more protection against liability than that given to either stockholders of corporations or members of limited liability companies . This was noted in the case of International News Service vs Associated Press , because the members of the AP are not liable for damages for the organization's actions unless the association as a whole approved it. In Texas , state law has statutes concerning unincorporated non-profit associations that allow unincorporated associations that meet certain criteria to operate as entities independent of their members, with

2360-560: The association usually enjoy limited liability . However, in some countries they are treated as having separate legal personality for tax purposes: for example, in the United Kingdom an unincorporated association is assessable to corporation tax . However, because of their lack of legal personality, legacies to unincorporated associations are sometimes subject to general common law prohibitions against purpose trusts . Associations that are organized for profit or financial gain are usually called partnerships . A special kind of partnership

2419-597: The classification of unincorporated business associations for the purpose of U.S. federal income tax law was governed by the " Kintner regulations", which were named after the prevailing taxpayer in the 1954 legal precedent of that name. As promulgated by the Internal Revenue Service (IRS) in 1960, the Kintner regulations set forth a complex six-factor test for determining whether such business associations would be taxed as corporations or partnerships. Some of these factors had equal significance, so that

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2478-411: The contributors, unless they can be shown to have renounced their right to such a trust in their favour. If the rights are held subject to contract, then they will be divided among the surviving membership upon dissolution, according to the terms of the contracts inter se or an implied term according to contribution. If, as a result of this contract or statute, no member can claim, the rights will pass to

2537-477: The flexibility that they provide to business owners; depending on the situation, an LLC may elect to use corporate tax rules instead of being treated as a partnership, and, under certain circumstances, LLCs may be organized as not-for-profit. In certain U.S. states (for example, Texas), businesses that provide professional services requiring a state professional license, such as legal or medical services , may not be allowed to form an LLC but may be required to form

2596-406: The funds transferred may be considered to have been under the terms of a private purpose trust . Many purpose trusts fail for want of a beneficiary and this may therefore result in the gift failing. However, some purpose trusts are valid, and, accordingly, some cases have decided that the rights associated with unincorporated associations are held on this basis. The dominant theory, however, is that

2655-507: The implied covenant of good faith and fair dealing). Under 6 Del. C. Section 18-101(7), a Delaware LLC operating agreement can be written, oral or implied. It sets forth member capital contributions, ownership percentages, and management structure. Like a prenuptial agreement, an operating agreement can avoid future disputes between members by addressing buy-out rights, valuation formulas, and transfer restrictions. The written LLC operating agreement should be signed by all of its members. Like

2714-457: The joint venture agreement signed by both parties with the aim of increasing the stature, awareness and economic value of the EuroLeague, EuroCup and the clubs. EP and IMG Media Limited have agreed on a long-term cooperation in the management, administration and organisation of the promotion and commercialisation of the EuroLeague and EuroCup through the incorporation of EV. Limited liability company A limited liability company ( LLC )

2773-588: The law treats as partnerships ( Gesellschaften , art. 705–740 BGB ). Associations can be for-profit ( wirtschaftlicher Verein ) or non-for-profit ( Idealverein ). Associations which pursue a public purpose can apply for tax exemptions ( gemeinnütziger Verein ). The freedom of association stands in the Universal Declaration of Human Rights : Article 20 Article 11 of the European Convention on Human Rights also protects

2832-522: The management and administrative organisation of the EuroLeague and EuroCup competitions in accordance with what is established in the bylaws. This company must adhere to the EuroLeague Regulations and any future modifications, amendments or derogations whenever the governing bodies approve them. Euroleague Ventures S.A. (EV), founded on 29 June 2016, is the limited liability company incorporated by EP and IMG Media Limited according to

2891-421: The members) or as an S corporation (entity level income and loss passes through to the members). Some commentators have recommended an LLC taxed as an S-corporation as the best possible small business structure. It combines the simplicity and flexibility of an LLC with the tax benefits of an S-corporation (self-employment tax savings). Some legal scholars argue that corporate income taxes are intended to limit

2950-400: The operating agreement provides otherwise, as permitted by statute in the state where the LLC was organized. The limited liability company has grown to become one of the most prevalent business forms in the United States. Even the use of a single member LLC affords greater protection for the assets of the member, as compared to operating as an unincorporated entity. Effective August 1, 2013,

3009-492: The police or other official body to inform the public of the association's existence. This could be a tool of political control or intimidation, and also a way of protecting the economy from fraud . In many such jurisdictions, only a registered association (an incorporated body) is a juristic person whose members are not responsible for the financial acts of the association. Any group of persons may, of course, work as an informal association, but in such cases, each person making

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3068-560: The power of corporations and to offset the legal benefits corporations enjoy, such as limited liability for their investors. There is concern that LLCs, by combining limited liability with no entity-level taxation, could contribute to excessive risk-taking and harm to third parties. Although there is no statutory requirement for an operating agreement in most jurisdictions, members of a multiple member LLC who operate without one may encounter problems. Unlike state laws regarding stock corporations, which are very well developed and provide for

3127-650: The presence of only half of them would result in classification as a partnership. Accordingly, the Wyoming Legislature tailored its statute to grant LLCs particular corporate features without exceeding this threshold. For several years, other states were slow to adopt the LLC form because it was unclear how the IRS and courts would apply the Kintner regulations to it. After the IRS finally decided in 1988 in Revenue Ruling 88-76 that Wyoming LLCs were taxable as partnerships, other states began to take

3186-403: The primary characteristic it shares with a partnership is the availability of pass-through income taxation . As a business entity, an LLC is often more flexible than a corporation and may be well-suited for companies with a single owner. Although LLCs and corporations both possess some analogous features, the basic terminology commonly associated with each type of legal entity, at least within

3245-487: The provisions of the relevant state act and lodge their constitution with the corresponding state government authority. In Israel , many non-profit organizations (NPOs) and non-governmental organizations (NGOs) are established as registered nonprofit associations (Hebrew amutah , plural amutot ) (some are established as public benefit companies (Hebrew Chevrah LeTo’elet Hatzibur ) not to be confused with public benefit corporations). Amutot are regulated by

3304-513: The right to own property, make contracts, sue and be sued, with limited liability for their officers and members. Certain civil-law systems classify an association as a special form of contractual relationship. Under the Quebec Civil Code an association is categorized as a type of statutory specific contract set forth in a constitution. An association can become incorporated with its own legal identity so that it may, e.g., open

3363-439: The rights are transferred to the members or officers absolutely, perhaps on trust for the members, but are importantly bound by contracts inter se . Accordingly, on dissolution, the distribution of these rights depends on how they were held. A purpose trust may by its nature survive the dissolution of the association, or it may not. If it fails as a result of the dissolution, then the rights will be held on resulting trust for

3422-421: The street gangs by name, with cases titled such as City of Los Angeles v. The Bloods and City of Los Angeles v. The Crips , which then allowed the city to go after any member of the street gang, as a member of the unincorporated association being sued, for damages resulting from graffiti tagging involving that gang's name,. New York state law regarding unincorporated associations actually gives members of

3481-556: The way in which the body meets and operates. Such an instrument is often called the organization's bylaws, constitution, regulations, or agreement of association. In most states and territories in Australia , a similar set of laws allows not-for-profit associations to become legal entities with a limit to the liability of their members. An example of such a law, the Associations Incorporation Act 1985 that

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