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Docstoc                               James R. McMaster and
Michael Dubetz                                     Sherman &
Howard L.L.C.                                (303) 299-8005
(303) 299-8164
January 2006         Limited liability companies, also known as
“LLCs”, and their members can benefit from the same types of
provisions that are found in the shareholder agreements of
corporations; however, care must be used when applying
shareholder agreement-type provisions to agreements in the LLC
context to ensure that valuation formulae work when there are
variances in capital accounts and other attributes of the
members.           Ever since the limited liability company was
first officially recognized by the Internal Revenue Service in
1988 as a “pass through” entity for federal tax purposes, the
LLC has become more and more popular as a vehicle for new
businesses. The pri