A limited liability company (LLC) is a form of business entity that is separate and distinct from a person, like a corporation. The LLC is often described as hybrid between a corporation and a partnership (or sole proprietorship). It allows for the limited liability protection similar to that of a corporation (i.e. your risk is limited to the amount that is invested in the LLC, and personal assets beyond that are usually protected). It also allows for a more flexible setup and operating structure than a corporation while providing the pass through taxation of a partnership (if a multi-member LLC) or a sole proprietorship (if a single member LLC). One of the main advantages of an LLC over a Partnership or a Sole Proprietorship is the Limited Liability protection.
Articles in this section
- What paperwork is required in order to open a business checking account?
- Does the designator “LLC” or "Inc." always need to be included in your companies name?
- Does Incfile have a Discount or Coupon Code?
- What steps do I need to take to ensure that my entity remains compliant?
- What is an LLC (Limited Liability Company)?
- LLC and Corporation Ongoing Compliance Requirements
- Should I assume that if I form an LLC or incorporate that no one else can use the same name?
- In Which State Should I Form my LLC or Corporation?
- What is a Publication Requirement?
- Starting Your Company