Browsing: Limited Liability Company (LLC)

A Limited Liability Company (LLC) is a flexible business structure that blends elements of both corporations and partnerships. It provides its owners, called members, with limited personal liability for business debts and obligations, meaning their assets are typically protected if the company incurs losses or legal issues. LLCs can be formed by individuals, groups, or even other legal entities, and they offer versatility in how the business is managed and taxed, often allowing members to choose between being taxed as a sole proprietorship, partnership, or corporation.

Beyond legal protection, LLCs are popular for their operational simplicity and fewer compliance requirements compared to corporations. They also offer credibility to small and medium-sized businesses by signaling formal organization to partners, customers, and investors. In many jurisdictions, LLCs enjoy favorable tax treatment and streamlined registration processes, making them an appealing choice for startups and growing enterprises seeking a balance of protection, efficiency, and autonomy.