Limited liability company

(redirected from Member Contributions)
Also found in: Dictionary, Legal.

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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
I do not plan to recommend that the ATRS Board increase the member contribution. The actuarial status of ATRS can be addressed by cost-cutting measures and other proposals to the AIRS Board later this year.
PERS reform redirected all member contributions made after 2003 to an individual account where members receive actual market returns on the broadly diversified PERS fund portfolio, both good (over 19 percent in 2009) and bad (negative 27 percent in 2008).
The statement also highlighted that EPF received Rs.54.8 billion in 2010 as member contributions and paid-out Rs.34.9 billion as refunds to the members and their legal heirs during the year while the gross income of the Fund was Rs.121.3 billion, which was 10.6% higher compared to that of the preceding year.
The regulation defines the set-aside amount as the total amount set aside for benefit payments from both member contributions and investment income.
"Member contributions are leveraged with additional funding from several sources, including our leading co-funding partner, the Pipeline and Hazardous Materials Administration in the U.S.
Firms offering matching member contributions - in which they pay in more if the employee ups their payments above the minimum - were found to be more generous than those offering a flat contribution.
Each local real estate board now maintains its own MLS through member contributions. And while over the years the MLS model has gone from a card file to an online database, it has remained fundamentally unchanged since the end of World War II--for good reason.
Funds for the pounds 1.5 million mosque, which can accommodate more than 2,000 worshippers, have come entirely from member contributions. The new centre is a Grade II-listed converted Victorian school.
A March 2004 newsletter informed pension plan members--clergy and lay employees--that although "plan investments returned 15 per cent during 2003, the assets were diminished by pension payments being higher than member contributions."
The donation was the result of Alaska USA member contributions through the sale of nearly 6,000 CMN holiday music CDs, a matching corporate contribution from Alaska USA Federal Credit Union and a donation of proceeds from the credit union's sales of excess used equipment and furniture.
NEA's 2002 campaign effort, financed through $6 million in voluntary member contributions to the NEA Fund for Children and Public Education, involved a high degree of NEA-state affiliate coordination and a long, long list of tasks--topped by targeted member mailings (3.5 million pieces), extensive member and public polling, phone banking, field visits by NEA Executive Committee members, and "media buys" for recommended candidates in key Senate races.
The project was funded solely by member contributions, with administrative support from staff and the association.

Full browser ?