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What Does LLC Mean As a Professional Designation

If a business has "LLC" in its name, it means it is a limited liability company. That designates the organizational structure of the business to distinguish it from a corporation. Including "LLC" in the name is one of the requirements for creating an LLC, a popular form for small businesses because of its simplicity. It doesn't require incorporation, stock issues or many other formalities.

State Laws Regulate
An LLC is formed under state laws, so there are 50 variations, but in general it is a simple structure created with Article of Organization that describe its owners -- known as members -- and business activity. It may be used for almost any type of business, although most states restrict banks and insurance companies. An LLC can have a single member in most states or several members or have corporations as members.
Personal Liability Protection

An LLC is a business structure that protects individual members from liability from legal actions or debts of the company. An individual can sue the LLC to recover damages, for instance, but cannot touch the personal assets of a member, such as a house or car. Establishing an LLC provides members the benefits of a corporation without the complexities of creating one.

Ownership
An LLC can have a single member and function as a sole proprietorship or have several members and act like a partnership, either with a designated managing member or with members sharing responsibilities. A corporation can be an LLC member, either as the single member or with others. This usually is done to allow a corporation "tiered ownership" of an enterprise to protect the parent corporation from liability.

Taxes
An LLC is not recognized as a taxable entity by the Internal Revenue Service, so all profits or losses flow through to the members. Single-member LLCs are taxed as sole proprietorships; LLCs with multiple members are taxed as partnerships. An LLC can choose to be taxed as a corporation.

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