Carter G. Bishop (Suffolk) & Daniel S. Kleinberger (William Mitchell) have posted An SMLLC Paradox: Disregarded for Federal Tax Purposes But Not in Federal Court on SSRN. Here is the abstract:
In Federal Court, the only member of a SMLLC may not represent the SMLLC unless that owner is also a lawyer. To do so exposes the SMLLC to dismissal as well as the owner to the unauthorized practice of law. The article explores the implications of these rules to small closely held LLCs.
