Limited Liabilty companies?

What is a limited Liability company?

A Limited Liability Company (LLC) is a relatively new business structure allowed by state statute.

LLCs are popular because, similar to a corporation, owners have limited personal liability for the debts and actions of the LLC. Other features of LLCs are more like a partnership, providing management flexibility and the benefit of pass-through taxation.

Owners of an LLC are called members. Since most states do not restrict ownership, members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit 鈥渟ingle member鈥?LLCs, those having only one owner.

A few types of businesses generally cannot be LLCs, such as banks and insurance companies. Check your state鈥檚 requirements and the federal tax regulations for further information. There are special rules for foreign LLCs.

Like other companies, only the assets of the company itself are at risk in a lawsuit, not those of its owners (that's what limited liability means). An LLC is a legal structure that's sort of halfway between an individual, unincorporated business and a full-blown corporation.