What is an LLC?

LLC stands for limited liability company. It is a company structure that combines aspects of a corporation and a partnership.

LLCs are popular because they offer the liability protection of a corporation, meaning that the owner’s personal assets are generally not at risk if the business is sued or incurs debt. At the same time, LLCs offer the tax advantages of a partnership, where the owners (called members) are taxed on their personal income rather than the company’s income.

LLCs can be formed by one or more individuals or entities, and there is no limit on the number of members that an LLC can have. LLCs are extremely easy to set up and manage, and they give a flexible structure that can be adjusted to the firm’s needs.

LLCs are governed at the state level, with different rules and criteria for founding and operating an LLC in each state. It is critical to get the advice of a lawyer or other legal practitioner to ensure that you are in compliance with all applicable laws and regulations.

The liability of an LLC’s owner or owners is limited. The liability of an LLC’s owner or owners is limited. This means that, in most cases, you, as the LLC owner, are not personally accountable for any debts made by your LLC business or the majority of business-related lawsuits. Creditors or persons who file lawsuits against your LLC cannot collect against your personal assets, such as your personal bank accounts, car, or home, because you are not personally accountable. They can only collect from your LLC’s assets, such as its bank account. See “LLCs and Limited Liability Protection” for further information.