Limited Liability Corporation- Is There Such a Thing?

I have had clients that have come to me and said that they have searched high and low looking for information about what is a "limited liability corporation?" They have found information on corporations and on limited liability companies but nothing on this so called, "limited liability corporation."

Another misnomer is the llc corporation.

This is because there is no such thing as a limited liability corporation or an llc corporation. . at least there is no legal entity with those official names. Many people mistakenly think there is an entity called a "limited liability corporation". While the naturally interpretation of this is that they are looking for information on a corporation legal entity (which incidentally does offer limited liability protection), the great majority of people that use the term "limited liability corporation" are really looking to learn more about the limited liability company (also known as the LLC).

Make sure you really understand this because a corporation is a very different kind of legal vehicle than a limited liability company. A corporation was the gold standard for businesses prior to the uprise of the limited liability company. While publicly traded businesses and very big companies . . . or those with complicated ownership and tax considerations can choose the corporation over the limited liability company, most small and medium sized, private businesses find that the limited liability company is th preferred vehicle.

So, if you are looking to understand what a "limited liability corporation" is or an llc corporation is, you will not find any such legal vehicles. Determine whether it is a corporation or a limited liability company that you are inquiring about and then go from there.

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