Hi guys,

I'm taking Agency and we spent most of the semester on partnerships and limited partnerships. The last day of class, the professor briefly addressed LLCs and the piercing the veil doctrine.

I think I understand it for the most part; however, I'm struggling with when an LLC can be treated like a partnership and, I guess, how that works.

Is it sufficient to say that if the LLC holds itself out as a partnership, it will then be treated as a partnership? And if it's not disclosed as an LLC, it defaults to a partnership for the specific issue that is being disputed? Further, if any statutory prerequisites aren't fulfilled, the LLC will then also be defaulted to a partnership for the issue that's in dispute? I feel like I'm missing something still. I get that once it's treated as a partnership, all of the agency issues come into play. I'm struggling with when it is treated as a partnership though.

If anyone could shed some light on this/ELI5, that'd be great :)