Definitions for "Limited Liability Corporation"
A limited liability corporation, commonly called an "LLC," is a business structure that fits somewhere between the corporation and the partnership or sole proprietorship. Like owners of partnerships or sole proprietorships, LLC owners report business profits or losses on their personal income tax returns; the LLC itself is not a separate taxable entity. Like a corporation, however, all LLC owners are protected from personal liability for business debts and claims -- a feature known as "limited liability." This means that if the business owes money or faces a lawsuit for some other reason, only the assets of the business itself are at risk. Creditors can't reach the personal assets of the LLC owners, such as a house or car. close window
A form of business ownership whereby the liability is limited to an investor's original capital investment, as opposed to a general partnership under which the partner or owner has unlimited liability.
A corporation formed with ‘flow through’ taxes and liability, very similar to a Limited Partnership.