Limited Liability
Corporation
Many
think that the acronym LLC stands for limited liability corporation.
This is actually a misnomer as it stands for limited liability
company. An LLC is technically an unincorporated legal entity.
Instead of being incorporated as a means to come into existence, it
is organized and formed.
A
corporation is a different kind of entity under the business laws of
every state. Both entities provide limited liability
protection but the owners of an LLC are called members and the
owners of a corporation are called shareholders.
The
LLC provides all the benefits of a corporation and can be set up
with a centralized management structure similar to that required by
a corporation (Board of Directors), but the LLC has the option of
having a more simple management structure if it chooses.
A
corporation is required to meet more legally required formalities
such as holding meetings and maintaining certain paperwork.
Limited Liability Company is For Small Business
The LLC is an
entity that is designed for small business. Visit
the articles in our Learning Center to learn more about
how you can use this entity to obtain a layer of limited
liability. Corporations are also used for business when
you plan on building a very large or complex business or
will be taking on professional investors such as venture
capitalists.
Form more
LLC Information about comparing the two entities or
how the limited liability company works for small
business, visit our The LLC Learning Center. Here
is a small sampling of some articles you can find there:
Benefits
of an LLC
What is an LLC
LLC Protection - How an LLC
Protects Me- A Primer on LLC Limited Liability
Tax Choices
for the LLC
The 5 Biggest Mistakes Made by
a New LLC Business
LLC or Corporation?
The LLC Charging Order- An LLC Benefit Not Offered by Corporations
Three Things to Be Aware of When Choosing an LLC Name for your
Business
Online LLC v. LLC Attorney and What To Look For in an Online LLC
Formation Company
Is an LLC a corporation
Learn How to Preserve LLC
Protection in Your Business in
6 Simple Steps
Forming an LLC
LLC Operating Agreement
LLC Information at LLC Learning Center
Back to the
Limited Liability Company Home Page |
