limited liability company
Shielded ownership structure
A limited liability company is a business structure that combines features of corporations and partnerships.
Owners (called members) enjoy protection from personal liability for business debts while avoiding the double taxation of corporate profits.
Abbreviated LLC in the United States: She registered her consulting firm as an LLC.
The structure offers flexibility in management and profit distribution.
Forming a legal entity
- formationCreation or arrangement
- bylawsOrganization's internal regulations
- registered agentEntity's official legal contact
- charterFounding organizational document
certificate · filing · dissolution · amendment · conversion · domestication · merger · annual report
Guarding against harm
- shieldHandheld defensive armor
- personal assetsOne's owned valuables
- corporate veilLegal separation of entity from owners
- piercingPenetrating or very sharp
separation · insulation · indemnification · exposure · risk mitigation · asset protection · safeguard · legal separation
One who belongs
- unitsStandard measures of quantity
- equityImpartial treatment or ownership value
- profit sharingDistributing earnings to workers
- distributionAllocation across recipients
buyout · transferability · voting rights · classes · preferred · common · capital account · admission
New business enterprise
- small businessModest independent commercial venture
- entrepreneurOne who starts businesses
- ventureRisky new undertaking
- enterpriseCommercial undertaking or initiative
real estate · subsidiary · freelancer · flexibility · scalability · business structure · commercial · contracting
One who directs others
- boardFlat rigid panel
- votingFormally registering a choice
- meetingsOrganized group assemblies
- resolutionsFormal decisions or pledges
fiduciary duty · duty of care · decision-making · authority · officers · roles · unanimous consent · majority vote
Transferred without retention
- taxable incomeEarnings subject to taxation
- deductionsConclusions from reasoning
- capital gainsProfit from asset sales
- retained earningsProfits kept by company
fiscal year · tax planning · estimated taxes · IRS · audit · write-offs · double taxation · allocations
incorporation
Forming a legal entity
- formationCreation or arrangement
- bylawsOrganization's internal regulations
- registered agentEntity's official legal contact
charter · certificate · filing · dissolution · amendment · conversion · domestication · merger · annual report · good standing
protection
Guarding against harm
- shieldHandheld defensive armor
- personal assetsOne's owned valuables
- corporate veilLegal separation of entity from owners
piercing · separation · insulation · indemnification · exposure · risk mitigation · asset protection · safeguard · legal separation
member
One who belongs
- unitsStandard measures of quantity
- equityImpartial treatment or ownership value
- profit sharingDistributing earnings to workers
distribution · buyout · transferability · voting rights · classes · preferred · common · capital account · admission · withdrawal
startup
New business enterprise
- small businessModest independent commercial venture
- entrepreneurOne who starts businesses
- ventureRisky new undertaking
enterprise · real estate · subsidiary · freelancer · flexibility · scalability · business structure · commercial · contracting · consulting
manager
One who directs others
resolutions · fiduciary duty · duty of care · decision-making · authority · officers · roles · unanimous consent · majority vote · deadlock
pass-through
Transferred without retention
- taxable incomeEarnings subject to taxation
- deductionsConclusions from reasoning
- capital gainsProfit from asset sales
retained earnings · fiscal year · tax planning · estimated taxes · IRS · audit · write-offs · double taxation · allocations
- corporate financecost of capital, investment, capital markets, NPV, debt financing
- business entitiescorporation, LLC, sole proprietorship, partnership, subsidiary
limited liability companysole proprietorship
Unincorporated individual-owned business
general partnership · personal liability · general partner · proprietor · freelancer
limited liability companysole proprietorship
Unincorporated individual-owned business
limited, limiting, limits, limitless, limitation, limitations, limiter, unlimited, liable