275.520 Issuance of membership interests and distributions by nonprofit limited
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/ky/275-520A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
liability company prohibited -- Exception for some business entities.
(1)Unless a nonprofit limited liability company has only business entities formed for a
nonprofit purpose as its members, a nonprofit limited liability company shall not
have or issue membership interests in the limited liability company, and no
distribution shall be paid, and no part of the income or profit of the limited liability
company shall be distributed to its members or managers.
(2)No part of the income or profit of a nonprofit limited liability company shall be
distributed to its manager or managers.
(3)A nonprofit limited liability company may pay compensation in a reasonable
amount to its members or managers for services rendered and may confer benefits
upon its members in conformity with its purposes, and these payments or benefits
shall not be deemed to be a distribution of income or profit.