Facebook and the LLC Myth

by MHanley on October 6, 2010

I saw The Social Network last night and was surprised to see two glaring technical errors.  You would think that a movie with a $50 million budget would at least have their script fact-checked for technical accuracy.

But, apparently they did not have a CPA or a corporate attorney take a look at the script.  Otherwise, the two lines that helped to further confuse the general public about what an LLC is would never have made it into the movie.

At one point in the movie, the attorneys are talking about the Delaware LLC that was setup as Facebook’s parent company.  One of the attorneys states “the LLC was incorporated in Delaware” and “the LLC’s Articles of Incorporation state that…”

I spend a large portion of my time explaining to people that LLCs are not in any way a corporation.  LLCs do not get “incorporated,” they get “formed” or “organized.”  LLCs do not have “Articles of Incorporation,” they have “Articles of Organization.”

So, now over 2 million people at over 2,750 theaters saw The Social Network this past weekend and now those 2+ million people have a seed planted in their minds that an LLC is a type of corporation.

Maybe Aaron Sorkin will read this and when the DVD comes out, they can dub over the words incorporated and Incorporation.  Or maybe they can just point out that the errors were intentional and that they purposely wanted to make the lawyer in the movie look like an idiot.

{ 1 comment… read it below or add one }

Arthur Colle May 10, 2011 at 6:33 pm

I actually didn’t notice this when I watched the Social Network, but when I pick up the DVD I’ll check and see if it is still in there. Nice find and nice article.

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