Limited Liability Company (LLC)
The Limited Liability Company (LLC) is a corporate structure in the United States, where owners are not personally liable for the company’s debts or liabilities. Limited liability companies are hybrid companies that combine the characteristics of a company with those of a partnership or sole proprietorship.
Although the requirements for LLC may vary by state, there are generally some common points in all areas. The first thing that owners or members need to do is choose a name.
Organizational items must be accompanied by a tax paid directly to the state. Additional documentation and fees must also be presented at the federal level to obtain an employer identification number (EIN).
Once this is done, the organization’s articles must be documented and archived in the state. These articles establish the rights, powers, duties, responsibilities and other obligations of each member of the LLC.
While the limited liability function is similar to that of a company, the availability of flow rates to members of an LLC is a feature of partnerships.