Corporations And Limited Liability Companies

A Limited Liability Company (usually referred to as an "LLC") is a legal entity that, like a corporation, has its own rights, powers, privileges and liabilities governed by the state in which it is created.

An LLC combines the limited liability aspects of a corporation with the pass-through taxation of a partnership. 

• An LLC is separate from its owners/members.
• Like a corporation, in an LLC, owners are shielded from personal liability for actions of the LLC.
• Like a partnership, all profits and losses pass directly to its owners. There is no separate income tax on the entity itself.

LLCs are generally subjected to fewer restrictions than corporations.

A board of directors is generally not required.

LLCs are relatively new entities in the United States. The law concerning LLCs is not as settled as the law relating to corporations.

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