What is an LLC?

<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <html><head> <meta http-equiv="Content-Type" content="text/html; charset=unicode"> <meta content="MSHTML 6.00.2900.5694" name="GENERATOR"></head> <body> <P>LLC stands for Limited Liability Company. An LLC is not a partnership or a corporation, so owners of an LLC are not partners or shareholders; they are "members." <P> An LLC combines some of the best aspects of partnerships and corporations. An LLC is less formal and more flexible than a corporation, but provides the same protection to the owners. For example, members are not personally liable for company debts. The LLC is a separate entity, so the owner s assets cannot be seized by creditors. LLC s also provide the advantages of a Partnership. For example, LLC taxation is based on the partnership model. Flow-through taxation is advantageous since members are only required to pay taxes on their earnings once instead of paying both corporate and individual taxes. <P> A Limited Liability Company, unlike a S-corporation, can have any number of owners. Unlike both an S-corporation and a C-corporation, an LLC is not required to have bylaws, meetings, or record and maintain minutes. While you will likely want to have some meetings, and maintain some records, with an LLC there are fewer requirements. The one key document you are generally not required to maintain, but should, is an Operating Agreement. (See FAQ's). All LLC's formed via IncorporateMyself.net come with a standard Operating Agreement. </P> </body></html>