89. LLC Full-Form | What is Limited Liability Company (LLC)

By | December 23, 2019
LLC Full-Form | What is Limited Liability Company (LLC)

Everyone should know full forms of words related to everyone. This page provides best full form and tells what is the full form of LLC. So your search for LLC full form is over. Page is dedicated to a basic full form. Go through and get meaning of LLC

LLC

The abbreviation or full form of LLC is Limited Liability Company

Additional information about LLC full form, abbreviation & meaning

LLC Full-Form | What is Limited Liability Company (LLC)

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.

Advantages –

  • 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.

Disadvantages –

  • 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.

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