What is a limited liability company?
A limited liability company, or LLC, is an entity created under state law which has characteristics of both a corporation and a partnership. Like a corporation, the owners of a LLC are not personally liable for the debts of the LLC. Like a partnership and sole proprietorship, an LLC has operating flexibility and is a pass-through entity for tax purposes. This means the profits of the LLC are passed through and taxable to the members of the LLC. Do you need an attorney to form an LLC? You do not need an attorney to form an LLC. You can prepare and file the legal paperwork, or use a professional business formation service such as LegalZoom. If you choose to form your LLC with LegalZoom, you will only need to answer a few simple questions online, and we will do the rest. We will review your answers for common mistakes, prepare your paperwork, file it with the state, and even send you an LLC kit with seals and certificates upon your request. If you think you have a complicated or special c
A limited liability company, like a corporation, is a legal entity existing separately from its owners. A limited liability company is created when proper articles of organization (or the equivalent under the laws of a particular state) are filed with the proper state authority, and all fees are paid. State laws typically impose additional pre or post-creation requirements as well. A limited liability company is not a partnership or a corporation, but it combines the corporate advantages of limited liability with (normally) the partnership advantage of pass-through taxation.
The Limited Liability Company is the business form of choice for those business owners desiring: 1) protection from individual liability for company debts, negligence, and breaches of contract; and 2) flow through taxation. The Limited Liability Company is a hybrid between the corporation form of organization and the limited partnership form. The Limited Liability Company protects all members (owners) from individual liability for company debts and misdeeds, much like the corporation. Please note that there are exceptions, such as the treatment of a professional limited liability company (PLLC). What’s more, while a creditor of the corporation can attach corporate stock and gain control of the corporation, a creditor of a Limited Liability Company cannot become a member and control the company, a creditor of a Limited Liability Company can only receive an income interest in the company. Consequently, the Limited Liability Company combines the best of corporations and partnerships becau
