LLC

(noun)

Limited liability company.

Related Terms

Examples of LLC in the following topics:

  • Limited Liability Companies (LLCs)

    • If you decide to set up an LLC, your liability depends on the amount you have invested.
    • choice of tax regime: an LLC can choose to be taxed as a sole proprietor, partnership, S or C corporation;
    • pass-through taxation (i.e., no double taxation), unless the LLC elects to be taxed as a C corporation;
    • Many jurisdictions levy a franchise tax or capital values tax on LLCs.
    • A famous company that started out as an LLC is YouTube.

  • Partnerships and Taxes

    • Below, we discuss Subchapter S Corporations, and LLCs.
    • The LLC is a relatively new type of hybrid business structure that is now permissible in most states.
    • The owners are members, and the duration of the LLC is usually determined when the organization papers are filed.
    • LLCs must not have more than two of the four characteristics that define corporations: Limited liability to the extent of assets, continuity of life, centralization of management, and free transferability of ownership interests.

  • Types of Corporations

    • An LLC is a flexible form of enterprise that blends elements of partnership and corporate structures.
    • The primary characteristic an LLC shares with a corporation is limited liability, and the primary characteristic it shares with a partnership is the availability of pass-through income taxation.

  • Types of Businesses

    • Primary ownership types of businesses include corporations, cooperatives, LLPs, LLCs, and sole proprietorships.
    • Primary ownership types of businesses include corporations, cooperatives, limited liability partnerships (LLPs), limited liability companies (LLCs) and sole proprietorships.

  • Types of Ownership

    • In the United States and some other countries, a limited company is known as either a corporation or a limited liability company (LLC) .

  • Introduction

    • Reviewer: Roger K Baer (CPA, LLC; and Former Partner, Arthur Andersen & Co., USA)

  • Corporate Taxes

    • An LLC, like an S corporation, is a hybrid entity having certain characteristics of both a corporation and a partnership or sole proprietorship.
    • The primary characteristic an LLC shares with a corporation is limited liability, and the primary characteristic it shares with a partnership is taxation on the ownership level.

  • The Process of Incorporation

    • Corporations and limited liability companies (LLCs) may hold assets such as real estate, cars or boats.
    • A creditor of a shareholder of a corporation or LLC cannot seize the assets of the company.
    • Transferable ownership: Ownership in a corporation or LLC is easily transferable to others, either in whole or in part.

  • US legal issues

    • In the United States, the Limited Liability Company (LLC) is the entity of choice for the owner or owners who prefer the limited liability afforded by a corporation and a tax treatment that allows profits to flow from the business to the owner or owners.
    • The LLC must also be registered with a State authority, but requires less documented structure.

  • Disadvantages of Sole Proprietorships

    • Unlike a corporation or an LLC, your business doesn't exist as a separate legal entity.