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What is a llc

What is a llc

What is a llc

The easiest way to form a corporation is by registering a limited liability company.A limited liability company (LLC) is a business structure in the U.S. that protects its owners from personal responsibility for its debts or liabilities. Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.While the limited liability feature is similar to that of a corporation, the availability of flow-through taxation to the members of an LLC is a feature of a partnership rather than an LLC.

Llc

via GIPHY

Articles of organization can then be documented and filed with the state. These articles establish the rights, powers, duties, liabilities, and other obligations of each member of the LLC. Other information included on the documents includes the names and addresses of the LLC's members, the name of the LLC's registered agent, and the business' statement of purpose.A limited liability company, commonly referred to as an “LLC”, is a type of business structure commonly used in the United States. LLCs can be seen as a hybrid structure that combines features of both a corporation and a partnership.

Like a corporation, LLCs provide their owners with limited liability in the event the business fails. But like a partnership, LLCs “pass-through” their profits so that they are taxed as part of the owners’ personal income.An LLC is a limited liability company, which is a type of legal entity that can be used when forming a business. An LLC offers a more formal business structure than a sole proprietorship or partnership. It also offers protection to the owner from personal liability for any of the debts that a business incurs. In other words, the personal assets of the owner can not be used for legal claims against the business. LLCs are common because they provide the liability that's similar to a corporation, but they are easier to establish. (Source: www.investopedia.com)

 

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