Limited liability company

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Related to Limited liability company: Private limited company, Limited liability partnership

Limited liability company (LLC)

A company that has characteristics of both a corporation and partnership. Like a corporation, it offers owners limited liability and like a partnership, taxation is at individual owner level rather than at corporate level.

Limited Liability Company

In the United States, a company with limited liability amongst its owners, that is, one in which a partner is not liable for more than his/her/its investment in case of insolvency. In other words, a co-owner of a limited company would lose the value of his/her investment if the company declares bankruptcy, but would not be held liable for other outstanding debts. A limited liability company is one of the most common corporate structures in the United States. It is designated by the letters "LLC" after its name.

A limited liability company is taxed as if it were a partnership, but has the ability to raise capital by acquiring new partners as if it were a corporation. However, because a limited liability company is not publicly-traded, it may have more difficulty raising capital than corporations. A limited liability company is designed to give at least some employees a share in the company's equity, while protecting them from potential losses. See also: Limited company.

Limited liability company.

Organizing a business enterprise as a limited liability company (LLC) under the laws of the state where it operates protects its owners or shareholders from personal responsibility for company debts that exceed the amount those owners or shareholders have invested.

In addition, an LLC's taxable income is divided proportionally among the owners, who pay tax on their share of the income at their individual rates. The LLC itself owes no income tax.

The limited liability protection is similar to what limited partners in a partnership or investors in a traditional, or C, corporation enjoy.

The tax treatment is similar to that of a partnership or S corporation, another form of organization that's available for businesses with fewer than 75 employees. However, only some states allow businesses to use LLC incorporation.

limited liability company

A cross between a corporation and a partnership, the limited liability company must be created by documents filed in the same place as corporations.This type of organization enjoys much of the informality of a partnership, the tax benefits of a partnership with all income taxed at the shareholder level but not at the company level (see double taxation), and the limited liability granted to corporate shareholders, who cannot be held personally liable for a corporate debt or transgressions. Be aware, however, that members of a limited liability company may well be safe from contractual claims against the company, but most claims for negligence or wrongdoing will include some theory of personal liability against the members also.

Example: A claim against a limited liability company may be for its negligence in allowing mud and water to remain on the floor, leading to a customer slipping and falling and sustaining back injuries. The plaintiff in such a case may claim the individual members were also personal- ly liable for their failure to develop policies and procedures to keep the floors clean or because they were also the employees and had personal responsibility to mop the floors.

References in periodicals archive ?
Liabilities and Obligations of Limited Liability Company Members
The Act states, "Nothing in this Section 1-26 prevents a limited liability company that is not organized under it from electing a charitable or educational purpose in whole or in part for doing business under this act.
The amount of the authorized capital of a private limited liability company may not be less than 10,000 litas (2,900 euros).
VentureStar will run as a business funded by private capital, self-supporting and returning a profit to its investors,'' according to an announcement about the new limited liability company in the Skunk Works' newsletter, the Star.
TAHP is designated a limited liability company, which means that, if it goes belly up, the IPO members would have limited personal liability for debts.
the limited liability company shall execute a statement of intent to dissolve in such form as shall be prescribed by the secretary of state.
In the March 1992 issue of the National Public accountant we discussed the limited liability company (LLC) as a new form of practice organization available under several states' corporation laws.
a Cayman Islands exempted company ("Starboard"), Parche, LLC, a Delaware limited liability company ("Parche"), Admiral Advisors, LLC, a Delaware limited liability company, Ramius Capital Group, L.
Watson, Of Counsel, McElroy, Deutsch, Mulvaney & Carpenter, LLP will speak at the Knowledge Congress' webcast entitled: “Best Practices in Dealing with Disputes and Litigation in a Limited Liability Company (LLC) in 2015 LIVE Webcast.
Richard, director of the National Retail Group in Manhattan, represented the seller, a limited liability company.
Since a private limited liability company is a more complex legal form than an individual enterprise, the new regulation related to private limited liability companies involves only the situation where there is only one shareholder who chooses to use all the standard provisions of the Law on Companies of the Republic of Lithuania and to form only one management body of the enterprise--the director.
Michael Topel was the manager of Thinktank, LLC, an Illinois limited liability company primarily involved in Web design and marketing.

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