Limited liability banking structure involving member banking and method of use
OwnerDouglas M. Durbanoinventor
Life of this patent
Estimating the term…
Abstract
A limited liability banking structure and method of use, wherein individual depositors or customer/owners, collectively referred to as “members,” may share in the profits and losses of the bank in order to stimulate deposits or capital raising, and still enjoy the benefits of limited individual liability and partnership taxation. Various classes of members offer a variety of associated, but unique, benefits including the pass through of certain profits or tax losses. The banking entity profits are not taxed at the entity level, but only as such profits are passed through to its various classes of members.
Claims11
A limited liability banking structure (10), comprising:
- a) a holding company (12), organized as a limited liability company;
- b) at least one chartered bank (14), organized as a limited liability company and wholly owned and managed by the holding company;
- and
- c) at least one franchise bank (16), organized as a limited liability company and wholly owned and managed by the holding company (12) in distinct locales.
A method of banking utilizing a limited liability banking structure, comprising the steps of:
- a) organizing a holding company (12), designated as a limited liability company;
- b) organizing at least one chartered bank (14), which is organized as a limited liability company and is wholly owned and managed by the holding company (12);
- c) organizing at least one franchise bank (16), which is organized as a limited liability company and is wholly owned and managed by the holding company (12);
- d) designating at least one management member (18), who contributes capital, makes deposits, and engages in management of the holding company (12) and franchise bank (16);
- e) designating at least one founding member (20), who contributes conception and capital to the holding company (12);
- and
- f) designating at least one investment member (22), who contributes capital and makes deposits to the holding company (12).
Dependencies are inferred from the claim text.