You're here:  Home --> Dictionary --> L --> LLC

Liabilities
Partnership
Sole-proprietor
Corporation

Limited Liability Company (LLC)
Term category: Finance/Accounting
In 10 words or less: A business structure that limits the liability the owners face.

Definition: A corporate structure that limits the amount of liability the owners have. If the company is sued or goes bankrupt, the owners are not responsible for debts or settlements.

StockJargon Advice: Forming an LLC is a relatively easy process that has a number of advantages. One of these is that they can be represented as a legally separate entity.

On the downside, LLC's have to pay annual franchise taxes and they're required to keep more paperwork.

Related Articles

Structure the Biz
A business has to have its own legal structure. This will help you decide which one to go with.

Why Do So Many Companies Incorporate in Delaware?
Most companies choose to incorporate in Delaware. This article explains why.

Business Structures
The IRS has put together this page explaining business structures

Related Books

Think Big, Act Small by Jason Jennings
Built to Last by Jim Collins
Competitive Strategy by Michael E. Porter
Profit from the Core By Chris Zook

# -A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z