Limited Liability Corporation

While sometimes referred to as Limited Liability Corporations, Limited Liability Companies are not corporations even though they do provide the same limited liability protection

For those who want the same limited liability as a corporation but without the formal structure and more cumbersome ongoing requirements, an LLC’s flexibility and simplicity offer a distinct advantage over a corporation. An S Corporation does, however, offer the advantage of allowing owners to minimize self employment taxes.

Highlights

  • Official documents, typically called a Certificate of Formation or Articles of Organization, must be filed with the appropriate state in order to form a C Corporation
  • State filing fees must be paid
  • Most states permit LLC’s to also file an operating agreement, allowing for great flexibility, setting forth the relationships between its members and its internal operation
  • An LLC can be managed by its members or by managers
  • An LLC is considered by the law to be an individual entity
  • Legally, an LLC is a separate entity from its members and managers
  • An LLC can generally conduct any lawful business
  • Most states permit 1 member LLC’s while none limits the number of members
  • Corporations, partnerships and trusts can be members of an LLC

 

Read more about a Limited Liability Corporation here

Other related information on Limited Liability Business Entities:

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