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The abbreviation or full form of LLC is Limited Liability Company
Additional information about LLC full form, abbreviation & meaning
Limited Liability Company (LLC) is the United States specific form of a private limited company. LLC is a legal form of a company that provides limited liability to its owners in many jurisdictions. LLC can be better described as a hybrid business entity having the characteristics of a corporation as well as a partnership or sole proprietorship. The main advantage of an LLC is that it is more flexible when compared to a corporation and it is generally suitable for companies with single ownership.
- An LLC can elect to be taxed as a sole proprietor, partnership, S corporation or C corporation providing for a great deal of flexibility.
- Less administrative work when compared to a corporation.
- Profits are taxed personally at member-level and not at the LLC level using default tax classification.
- LLC’s in few states can be set up with only one person involved.
- In the case of real estate companies, each separate property can be owned by its own, individual LLC, thereby protecting not only the owners but also their other properties from cross-liability.
- It may become difficult to raise financial capital.
- Many jurisdictions impose a franchise tax on LLCs which is the fee an LLC pays to the state for the enjoying the benefits of limited liability.
- The management structure of an LLC may not be properly organized.