What is a Limited Liability Corporation (LLC)?
A limited liability company is a business entity that combines various attributes of a traditional corporation, such as the personal liability protection, and various attributes of a partnership or sole proprietorship, such as tax benefits and simplified formalities. These are some advantages of forming an LLC: • A corporation is required to form and to maintain a board of directors, corporate officers and shareholders. While a traditional corporation must hold regular meetings of the board of directors and shareholders and maintain written corporate minutes, books and records, it is not required of an LLC to hold regular meetings for its members and manager(s). • LLCs are, by default, treated as a “pass-through” entity, like a sole proprietorship or partnership, for tax purposes. If desired, however, an LLC can specially elect to be treated as a C- or S-corporation for tax purposes. • While S-corporations are restricted in the number or types of entities which may be members, LLCs are
