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Limited Liability Company (LLC)

Limited Liability Company (LLC) is a new and hybrid business entity providing limited liability to its owners. A Limited Liability Company offers limited liability as in a corporation, and pass-through income taxation as in a partnership.

Forming a Limited Liability Company (LLC) is more complicated than forming a partnership. A Limited Liability Company (LLC) can choose to be taxed as a corporation, or pass-through income taxation as in a partnership.

Possible unethical and undutiful behavior of partners in a business has always been a problem for others who acts ethical. A Limited Liability Company (LLC) can protect an individual from obligations arisen by those partners. Individuals who own a Limited Liability Company (LLC) are the members, and a Limited Liability Company (LLC) is directed by these members, or by selected directors. The lifetime of a Limited Liability Company (LLC) is set during the formation, but it can be extended in the future.

A Limited Liability Company (LLC) may not be available in every state in the United States. Some types of businesses like banks and insurance companies are also not allowed to be formed as a LLC.


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