what is the meaning of llc?
- LLC is an abbreviation for Limited Liability Company. A LLC has been described as a cross between a partnership and a corporation.
- Members (owners) of the LLC have limited liability for the debts and obligations of the company. In effect, you have the liability protection of a corporation but the tax benefits of a partnership.
- Members can only lose whatever investment or capital they have put into the company.
- A LLC is also much more flexible regarding its management structure. A basic, single document called the Articles of Formation or Organization is filed with the State of Delaware, Division of Corporations to bring life to a LLC. A LLC operating agreement is where you outline the duties and responsibilities of members (owners) and managers. You can also have Managing Members.
- Delaware and all states recognize the limited liability company. You can open a domestic Delaware LLC and then register to do business in your home state. This process is called a foreign qualification.
For more information about all the types of entities that Delaware recognizes, visit this page here.
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