LLCs Are Not Partnerships

LLCs Are Not Partnerships

      A recent slip opinion from New York provides further authority for the proposition that LLCs are just that, and they are not a species of either the corporation or, as is specifically referenced in this opinion, a partnership.  Born to Build, LLC v. Saleh, 2014 N.Y. slip. op. 50594 (U) (Sup. Ct. Nassau County, Feb. 28, 2014).

      The subject dispute involved the rights of a purported purchaser of an interest in an LLC at a courthouse step sale.  In response to efforts by the purchaser to allege rights vis-à-vis the LLC based upon partnership law, the Court wrote:

The plaintiff’s reliance upon comparisons to the Partnership Law to justify a levy in sale of a membership interest in a limited liability company is unavailing as limited liability companies do not fall within the ambit of the Partnership Law and the existence and character of partnerships and limited liability companies are statutorily dissimilar.  (citation omitted).