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What is a limited liability company?

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2014-12-30 16:27:06
2014-12-30 16:27:06

A limited liability company (LLC):

  • is a type of business ownership combining several features of corporation and partnership structures
  • is not a corporation or a partnership
  • may be called a limited liability corporation, the correct terminology is limited liability company
  • owners are called members not partners or shareholders
  • number of members are unlimited and may be individuals, corporations, or other LLC's

A 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.

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2010-03-01 21:34:38
2010-03-01 21:34:38

The wordings of term Limited Liability Company or LLC are very self explainatory. The owners of the company have limited liability for the action of the company formed by them. In most of the situation the owners' liability is limited to their invetment in the company. This protection to owners is lost if there is some fraud or misappropriation..

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Related Questions


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.


A company can be a limited or unlimited. Limited liability company is one which limits the liability of the members(shareholders) by (1) limited by shares or (2) limited by guarantee. Therefore Company limited by guarantee is a type of limited company which means the liability of the members' is limited by the guarantee given by them while becoming the member. The members have agreed to be liable to the company at the time of liquidation of the company upto an amount for which he is liable and does not have any other liability. Limited by shares means the member (shareholder) is liable for the value of the shares only. Members of the company with unlimited liability has unlimited liability for which they are liable even from their personal property if required.



A private, limited company would be a company with limited liability. This can be a company owned by two or more people. In this case, the liability of each owner is limited.



Private liability is a type of company that offers limited liability. This limited liability can also include limited legal protection for its shareholders.


LLC: Limited Liability Company It is a type of company in which the owners bear only a limited liability.


Not exactly, ExxonMobile is a Limited Liability Company (LLC). An LLC is a company not a corporation.


You cannot convert an Individual Retirement Account into a Limited Liability Company.You cannot convert an Individual Retirement Account into a Limited Liability Company.You cannot convert an Individual Retirement Account into a Limited Liability Company.You cannot convert an Individual Retirement Account into a Limited Liability Company.



unlimited liability: -sole trader -partnership Limited liability: -Ltd (private limited company) -Plc (public limited company)


Liability of a Pvt limited Company is limited - a mith. The fact is that liability of a share holder of a limited company is limited to the extent of value of the shares. In other words, the other assets of the shareholder can not attached for default of the company. So the liability of a limited company is limited to the assets of the company, not limited to the face value of the shares. On the other hand the partner of a partnership company has unlimited liability. i.e., the assets of the partner can be attached in case of default. Similarly, when a pvt limited company is a partner the liability of the company is unlimited and to the extent of assets of the company not to the assets of individual shareholders. So a limited company is a legal entity and can become a partner or proprietor of a firm.


Limited liability is a concept whereby a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership with limited liability. A shareholder in a limited liability company is not personally liable for any of the debts of the company, other than for the value of his investment in that company. The same is true for the members of a limited liability partnership and the limited partners in a limited partnership. By contrast, sole proprietors and partners in general partnerships are each liable for all the debts of the business (unlimited liability).


No, you will have to file a new Articles of Organization and setup a new LLC.


A company where liability is limited to the members. There are three kinds of limited company: private company limited by guarantee, private company limited by shares, Public limited company


The difference between LTD and PLCLIMITED COMPANY is a company with limited stockholder liability: a company whose owners and managers enjoy limited liability and some tax benefits, but avoid some restrictions associated with S corporationsA Public LIMITED COMPANY is a company with limited stockholder liability: a company in the United Kingdom whose shares can be bought and sold on the stock market and whose stockholders are subject to restricted liability for any debts or losses.One is open to the public and the other is not.


Ltd is an abbreviation for Limited Liability; a limited company has limits to its liability; if the company goes bankrupt, or is sued, the liability does not extend to the shareholders in the company. A non-limited company; usually sole traders or partnerships, has unlimited liability - if a plumber floods your house, he is liable and you can sue him. Most non-limited companies have insurance to cover this kind of eventualility.


LIMITED COMPANY is a company with limited stockholder liability: a company whose owners and managers enjoy limited liability and some tax benefits, but avoid some restrictions associated with S corporations A Public LIMITED COMPANY is a company with limited stockholder liability: a company in the United Kingdom whose shares can be bought and sold on the stock market and whose stockholders are subject to restricted liability for any debts or losses. One is open to the public and the other is not.


Limited Liability Company.


Limited Liability Company


Limited Liability Company


Yes you are correct. Limited means limited liability for the owners or principles of the company. It does not however limit the liabilities of the company itself. only the principles personal assets are protected.


A "WLL" company is a type of limited-liability corporation, where WLL stands for "With Limited Liability." The rules for a WLL vary by country. In the US, the LLC ("Limited Liability Corporation") business type is similar.


The move to a limited liability company completely depends on the type of small business they own. For most small businesses, turning into a limited liability business is worthwhile.


A Missouri limited liability company is formed by filing Articles of Organization with the Missouri Secretary of State.



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