A Limited Liability Company also known as a LLC is a new form of business structure which was developed for entrepreneurs who want the limited liability benefit of a corporation with the tax benefits of a partnership. You can even think of it as the new hybrid of business structures. Like a corporation, Limited Liability Companies (LLCs) require shares, however owners are called members not shareholders. Unlike a C corporation it is not limited to just one class of stock and unlike a S corporation not all stock holders need to be US citizens. Since Limited Liability Companies (LLCs) is relatively new, its definition and treatment may vary from state to state. A few states require at least two owners to form a Limited Liability Company (LLC). Some states will tax Limited Liability companies as a corporation.
- Limited Liability
- Taxed as a partnership (not in all states however)
- Unlimited number of members allowed
- Members can include individuals, corporations and other LLCs
- Some states do not allow one member Limited Liability companies
- Businesses such as banks and insurance companies can not become Limited Liability companies.