LLC
Liability-limiting letters
LLC stands for limited liability company, a business structure that shields owners' personal assets from company debts while offering simpler taxation than a corporation.
The LLC combines features of partnerships and corporations: profits pass through to owners' personal taxes, but liability stays with the business.
She formed an LLC for her consulting work.
Most small businesses in the U.S. operate as LLCs.
Forming a legal entity
- registered agentEntity's official legal contact
- filingStoring documents systematically
- business licenseAuthorization to conduct commerce
- EINFederal business identifier
trade name · jurisdiction · statutes · compliance · annual report · fees · paperwork · registration
New business enterprise
- small businessModest independent commercial venture
- entrepreneurshipCreating and managing ventures
- ventureRisky new undertaking
- enterpriseCommercial undertaking or initiative
People in an organization
- ownershipLegal right of possession
- bylawsOrganization's internal regulations
- governanceHow authority is exercised
- flexibilityAbility to adapt easily
Capped financial responsibility for owners
- personal assetsOne's owned valuables
- asset protectionSecuring owned resources legally
- indemnificationCompensation for loss suffered
- fiduciary dutyObligation to act loyally
piercing the veil · separation · creditors · lawsuits · risk management · shield
Transferred without retention
- Schedule CSole proprietor income form
- K-1Kindergarten through first grade
- profitsFinancial surplus after costs
- distributionsActs of parceling out
incorporation
Forming a legal entity
- registered agentEntity's official legal contact
- filingStoring documents systematically
- business licenseAuthorization to conduct commerce
EIN · trade name · jurisdiction · statutes · compliance · annual report · fees · paperwork · registration
startup
New business enterprise
- small businessModest independent commercial venture
- entrepreneurshipCreating and managing ventures
- ventureRisky new undertaking
enterprise · freelancer · consulting · ownership · dissolution
members
People in an organization
- ownershipLegal right of possession
- bylawsOrganization's internal regulations
- governanceHow authority is exercised
limited liability
Capped financial responsibility for owners
- personal assetsOne's owned valuables
- asset protectionSecuring owned resources legally
- indemnificationCompensation for loss suffered
fiduciary duty · piercing the veil · separation · creditors · lawsuits · risk management · shield
pass-through
Transferred without retention
- Schedule CSole proprietor income form
- K-1Kindergarten through first grade
- profitsFinancial surplus after costs
- abbreviationsMr, Mrs, Ms, Dr, Jr
- Business AcronymsSKU, UPC, CEO, COO, POS
- Business SuffixesLtd, Corp, Co, GmbH, PLC
- incorporationarticles of incorporation, incorporator, incorporation, incorporators, registered agent
- businesscompany, corporation, firm, enterprise, commerce
- entrepreneurshipentrepreneur, startup, founder, co-founder, cofounder
Unincorporated individual-owned business
general partnership · corporation · public company · nonprofit organization · 501(c)(3)
Unincorporated individual-owned business
general partnership · DBA · doing business as · freelancer · independent contractor