A limited liability company (LLC) is a legal business structure that combines elements of a corporation and a partnership. Here’s a look at how LLCs work.
Forming an LLC is the simplest way of structuring your business to protect your personal assets in the event your business is sued. An LLC is the most popular business structure chosen by small business owners that offers: Personal liability protection of a corporation Pass-through taxation ...
protecting their personal assets. LLCs are designed to keep their owner's assets separate from their business assets so that in the case of bankruptcy or lawsuit, the personal assets and personal income of the LLC's owners and members are protected from business liability. ...
An LLC is a versatile business structure in that it incorporates elements of both traditional corporations and partnerships. It shields its owners, known as members, from personal liability in most instances, meaning personal assets like houses, cars and savings accounts can't be seized to collect...
Liability. A member’s personal assets are, for the most part, protected and held separate from the actions of a company in an LLC. Say, for example, that your business runs into financial trouble and creditors come seeking collections. Any personal bank or investment accounts, or other asset...
There are exceptions to personal liability protection In most cases, LLC members’ personal assets are considered to be separate from the business, and thereby protected from any litigation involving the business. A judge may rule otherwise, however, if LLC members do not keep the business finances...
Simply put, an LLC is the least complex business structure. Unlike an s corp or c corp, the structure of an LLC is flexible. Starting an LLC also gives you the perk of pass-through taxes, limited liability (obviously), and legal protection for your personal assets. Plus the added benefit...
Limited Liability Protection As earlier stated, an LLC is an independent legal business entity that can acquire assets, apply for loans, bid for contracts, and be sued in court. Members are immune from personal liability for the LLC’s and its other members’ actions. Lenders cannot seize the...
A limited liability company, or an LLC, is a U.S business structure that gives you protection and flexibility to run your business.
A registered agent is a company that an LLC hires to manage the various legal and government correspondence sent to the LLC so that it can be sure to comply with state regulations. Benefits of an LLC An LLC provides its members with limited personal liability relating to the company's busine...