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A limited liability company, or LLC, is its own entity and can possess assets, property, and liability. This allows you shield your personal assets from the assets of the limited liability company.

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โˆ™ 2010-03-01 22:33:44
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Q: What are the advantages of being a limited liability company?
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Advantages of Cadburys being a plc?

The advantages include: limited liability, separate legal entity, can raise large capital and freely transferable. Cadburys is a limited company which can sell its shares on the stock exchange.


WHAT is true for a limited liability partnership?

Limited liability is a type of liability that cannot exceed the amount that has been invested in a partnership or limited liability company. Limited liability protects personal assets from the risk of being seized to satisfy creditor's claims, debts and other obligations. For privately or publicly held corporations, a shareholder's responsibility for the company's debts is limited to the par value of paid up shares. The company itself as a legal entity is liable for the rest.


What is the meaning of limited liability?

Limited liability is a type of liability that cannot exceed the amount that has been invested in a partnership or limited liability company. Limited liability protects personal assets from the risk of being seized to satisfy creditor's claims, debts and other obligations. For privately or publicly held corporations, a shareholder's responsibility for the company's debts is limited to the par value of paid up shares. The company itself as a legal entity is liable for the rest.


How would you describe a limited-liability corporation?

There is no such thing as a 'limited-liability corporation'. A 'limited liability company' is an unincorporated organization that is treated as a separate entity from the members (equivalent to stockholders of a corporation) but is ignored for tax purposes. A single member limited liability company is treated as if the income is that of the member. A multiple member limited liability company is treated as a partnership. Unless the LLC chooses to be taxed separately as a corporation. Limited-liability companies enjoy the benefits of limited liability while being taxed like a general partnership. Owners' net income is taxed at an individual personal rate rather than at the rate of a corporation


What is a limited liability company?

A limited liability company (LLC):is a type of business ownership combining several features of corporation and partnership structuresis not a corporation or a partnershipmay be called a limited liability corporation, the correct terminology is limited liability companyowners are called members not partners or shareholdersnumber of members are unlimited and may be individuals, corporations, or other LLC'sA limited liability company is a corporate structure whereby the members cannot be held personally liable for the company's liabilities or debts. The laws that govern vary in different jurisdictions. It is similar to a corporation in some respects but not all. If you are interested in forming an LLC you should consult with an attorney who specializes in business law.In general, limited liability is a type of liability that cannot exceed the amount that has been invested in a partnership or limited liability company. Limited liability protects personal assets from the risk of being seized to satisfy creditor's claims, debts and other obligations. For privately or publicly held corporations, a shareholder's responsibility for the company's debts is limited to the par value of paid up shares. The company itself as a legal entity is liable for the rest.


What is limited liability company is?

A limited liability company (LLC):is a type of business ownership combining several features of corporation and partnership structuresis not a corporation or a partnershipmay be called a limited liability corporation, the correct terminology is limited liability companyowners are called members not partners or shareholdersnumber of members are unlimited and may be individuals, corporations, or other LLC'sA limited liability company is a corporate structure whereby the members cannot be held personally liable for the company's liabilities or debts. The laws that govern vary in different jurisdictions. It is similar to a corporation in some respects but not all. If you are interested in forming an LLC you should consult with an attorney who specializes in business law.In general, limited liability is a type of liability that cannot exceed the amount that has been invested in a partnership or limited liability company. Limited liability protects personal assets from the risk of being seized to satisfy creditor's claims, debts and other obligations. For privately or publicly held corporations, a shareholder's responsibility for the company's debts is limited to the par value of paid up shares. The company itself as a legal entity is liable for the rest.


What do companies do to ensure product liability?

"They try to avoid being liable for damages inccured for their products, often that is why companies have LLC or Limited Liability Company on the end of their name/title"


What are the major differences between cooperative and limited liability companies?

Limited liability is a type of liability that cannot exceed the amount that has been invested in a partnership or limited liability company. Limited liability protects personal assets from the risk of being seized to satisfy creditor's claims, debts and other obligations. For privately or publicly held corporations, a shareholder's responsibility for the company's debts is limited to the par value of paid up shares. The company itself as a legal entity is liable for the rest. A cooperative is a jointly owned enterprise engaged in production and distribution of goods, supplying services, farmers, or building ownership. It has no such protection unless it takes the legal steps necessary to form a business entity that can access limited liability.


What are the advantages of a corporation?

The biggest advantage is that the liability of the owners of the corporations is limited to the extent of their financial involvement. There are many advantages to being a corporation. These advantages include name protection, additional credibility, tax breaks, and perpetual existence.


Describe the main features of Private Limited Companies and Public Limited Companies?

CONTINUITY: the death or retirement of a shareholder will not hamper the operation of the business. LIABILITY: the liability of the shareholder is limited to their investment's. This clause also protects their personal property from being liquidated to cover any debts of the company. The company has it's own legal identity


What is the difference between LLC vs Inc?

Inc. refers to an entity being a corporation while LLC means limited liability company. The difference is in the structure of the companies. A corporation also offers limited liability, but it differs from a corporation in structure and the regulations it must follow.


By being a separate legal entity a corporation can sue and be sued This is known as a?

limited liability


What are the problems of changing from one legal structure to another?

as you change from being a sole trader to suppose a partnership or a limited liability company you lose control and ownership, but then your business benefits from this and grows


State three advantages to the company of being connected to the internet?

advantage of a company being conected to the internet


Advantages of maintaining records of stocks?

There are many advantages of maintaining records of stocks. These advantages include but are not limited to being able to observe trends.


Advantages of being a private limited company?

One advantage to having a private company is the fact that you can do what you want without consulting the Board of Directors. Private businesses don't have to release documents to the Securities Exchange Commission.


An advantage of a corporation is that?

One of the main advantages of a corporation is that it is separate from its owners. Corporations also have the advantage of being able to exist if one or more owners quit or pass away. Corporations also have limited liability protection.


What is liability exposure?

Liability exposure is when a company or a person is open to being sued. Typically, they are negligent and cause harm, which makes the exposed to a lawsuit.


Advantages of neem?

There are limited advantages of neem. Some of them include salvage for skin disease and being rich in vitamin C.


What are the advantages and disadvantages of being a private limited company?

Advantages of Private Limited Company No Minimum Capital No minimum capital is required to form a Private Limited Company. A Private Limited Company can be registered with a mere sum of Rs. 10,000 as total Authorized Share capital. Separate Legal Entity A Private Limited Company is a separate legal identity in the court of the law, meaning assets and liabilities of the business are not the same as the assets and liabilities of the Directors. Both are counted as different. A Private Limited Company separates Management and Ownership and thus, managers are responsible for the companyโ€™s success and are also answerable for the companyโ€™s loss. Limited Liability If the company undergoes financial distress because of whatsoever reasons, the personal assets of members will not be used to pay the debts of the Company as the liability of the person is limited. For e.g. If a Private Limited Company takes any loan and is unable to pay off, the members are responsible to pay only that much how much they own towards their own shareholding i.e. the unpaid share value. Which means, if you have no balance payable towards the amount of shares you hold, you are not payable towards any debt payable by the company even if the debt/credit amount remains unpaid. Fund Raising A Private Limited Company in India is the only form of business except Public Limited Companies that can raise funds from the Venture Capitalists or Angel investors. Free & Easy transfer of shares Shares of a company limited by shares are transferable by a shareholder at any other person. The transfer is easy as compared to the transfer of an interest in a business run as a proprietary concern or a partnership. Filing and signing a share transfer form and handing over the buyer of the shares along with share certificate can easily transfer shares. Uninterrupted existence A Private Limited Company has โ€˜Perpetual Successionโ€™, that is continued or uninterrupted existence until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership. โ€˜Perpetual Successionโ€™ is one of the most important characteristics of a company. FDI Allowed In Private Limited Company, 100% Foreign Direct Investment is allowed that means any foreign entity or foreign person can directly invest in a Private Limited Company. Builds Credibility The particulars of the company are available on a public database. Which improves the credibility of the company as it makes it easy to authenticate the details Disadvantages of a Private Limited Company One of the main disadvantages of a Private Limited Company is that it restricts the transfer ability of shares by its articles. In a Private Limited Company the number of shareholders in any case cannot exceed 50. Another disadvantage of Private Limited Company is that it cannot issue prospectus to public. In stock exchange shares cannot be quoted.


What are the advantages and disadvantages of being a unlisted company?

There are many advantages and disadvantages to being an unlisted company. Advantages would be being more private and not being overwhelmed with potential clients. However, there is more of a disadvantage than anything. Most people will not be able to search for your company online because it is unlisted, so you will lose out on money that way.


Why company limited by guarantee does not have share capital?

In a company limited by shares, each shareholder's loss in the event of the company being wound up is limited to the value of his/her shareholding. In a company limited by guarantee, the amount of loss is limited to the (usually nominal) amount that the members guarantee to pay (as stated in the company's Memorandum of Association). Since the guarantee already limits the amount of the members' liability, it is not necessary to further limit it according to the number of shares that the member holds. Companies limited by guarantee are also most often used for clubs, associations, etc. where all member votes count as equal and not according to the number of shares held.


Formation of public limited company?

A limited company grants limited liability to its owners and management. Being a public company allows a firm to sell shares to investors this is benificial in raising capital. Only Public Limited public-limited-companymay be listed on the London Stock Exchange and will have the suffix PLC on their ticker symbol. For example, British Petroleum has the ticker BP PLC.Other requirements include: It must be registered as a public company, it must have at least £50.000 or ¬65,000 of authorized share capital.To form a PLC, it would be advisable to seek legal cousel advice.


How do you turn a business into a corporation?

You may want to call your local county building and find list your business name. Then go to your "State web sit" and type up under search "Limited Liability Company" and "Corporation" Then read and even call them if you have any Questions. By opening a business you will have a lot more advantages to recover any expenses that you incure, fuel, lodging, food, Items and lots more. It is very easy to do this your self, You do not have to pay an Attorney Tons of money to just fill out papers. Once you have established a Company name, and placed it with the state you live in, your now a company. Review your options on whether to just be "Limited Liability Company" If you do not have any employees or few employees this is probley your best bet. By being a "Limited Liability Company" like me. "WHPLSH.LLC" I have protected myself from my personal life finances and bank accounts. My company is a seperate entity from my personal finances. Good Luck Cliff Rememmber to read as much as posable and do not be affraid.


Advantages and disadvantages of being a private limited company?

Once you form a Private Ltd company it is useful in two ways1. Your Company name and Identity will be focused in India ( Because the name what you select will not have similar name in India)2. Once.recognized formal structure limited libality to pay dividends in lieu of salary separation of personal and company assets continuity of business beyond the individuals