Legal Terms: Limited Liability Company (LLC)

Visit us at lawshelf.com to earn college credit for only $20 a credit! We now offer multi-packs, which allow you to purchase 5 exams for the price of 3, or 10 exams for the price of 5, and are thus the most efficient and affordable way to earn college credit with LawShelf courses. LawShelf courses have been evaluated and recommended for college credit by the National College Credit Recommendation Service (NCCRS), and may be transferred to over 1,500 colleges and universities. We also have established a growing list of partner colleges that guarantee LawShelf credit transfers, including Excelsior University, Thomas Edison State University, University of Maryland Global Campus, Purdue University Global, Touro University Worldwide, and many more!
An LLC, or limited liability company, is a business organization created under state law that provides for limited liability for all of its members. It was built on the limited partnership model, though that entity requires at least one partner with personal liability. The LLC can choose to be taxed as a “pass-through” entity, which means that its profits pass-through to its members and are taxed directly to them, or it may choose to be taxed as a corporation.
The owners of an LLC are known as its “members” and the “managing members” are those tasked with its administration. An LLC Operating Agreement is typically executed to govern the company and its articles of organization must be filed with appropriate filing fee with the Department of State.
The universal limited liability and flexibility of taxation has made the LLC one of the most common forms of business entities in the United States today.