A limited liability company or A company with limited liability (abbreviated L.L.C. or LLC or W.L.L) in the law of the vast majority of United States The United States of America is a federal constitutional republic comprising fifty states and a federal district. The country is situated mostly in central North America, where its forty-eight contiguous states and Washington, D.C., the capital district, lie between the Pacific and Atlantic Oceans, bordered by Canada to the north and Mexico to the jurisdictions is a legal form of business company In the United States, a company is a corporation—or, less commonly, an association, partnership, or union—that carries on an industrial enterprise." Generally, a company may be a "corporation, partnership, association, joint-stock company, trust, fund, or organized group of persons, whether incorporated or not, and any receiver, that provides limited liability Limited liability is where a concept of whereby a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership with limited liability. In other words, if a company with limited liability is sued, then the plaintiffs are suing the company, not its owners or investors. A to its owners. Often incorrectly called a "limited liability corporation" (instead of company), it is a hybrid business entity having certain characteristics of both a corporation A corporation is an institution that is granted a charter recognizing it as a separate legal entity having its own rights, privileges, and liabilities distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business and a partnership A partnership is a type of business entity in which partners share with each other the profits or losses of the business. Partnerships are often favored over corporations for taxation purposes, as the partnership structure does not generally incur a tax on profits before it is distributed to the partners (i.e. there is no dividend tax levied) or sole proprietorship A sole proprietorship also known as a sole trader, or simply proprietorship is a type of business entity which is owned and run by one individual and where there is no legal distinction between the owner and the business. All profits and all losses accrue to the owner . All assets of the business are owned by the proprietor and all debts of the (depending on how many owners there are). An LLC, although a business entity, is a type of unincorporated association A voluntary association or union is a group of individuals who voluntarily enter into an agreement to form a body (or organization) to accomplish a purpose and is not a corporation. The primary characteristic an LLC shares with a corporation is limited liability Limited liability is where a concept of whereby a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership with limited liability. In other words, if a company with limited liability is sued, then the plaintiffs are suing the company, not its owners or investors. A, and the primary characteristic it shares with a partnership is the availability of pass-through income taxation Taxation in the United States is a complex system which may involve payment to at least four different levels of government and many methods of taxation. United States taxation includes local government, possibly including one or more of municipal, township, district and county governments. It also includes regional entities such as school and. It is often more flexible than a corporation and it is well-suited for companies with a single owner.
It is important to understand that limited liability does not imply owners are always fully protected from personal liabilities. Courts can and do pierce the corporate veil of LLCs when some type of fraud In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and is also a civil law violation. Many hoaxes are fraudulent, although those not made for personal gain are not technically frauds. Defrauding people of or misrepresentation is involved, or under certain situations where the owner uses the company as an "alter ego."[1]
(Mark G. Clark)
Fri, 20 Nov 2009 17:23:19 GM
MARK: Well, Damien, a . Limited Liability Company. or what is more commonly referred to out in the public as an . LLC. is a business entity. Similar to a corporation or sole proprietorship or a partnership, but it has some features that may ...
