LLC meaning in Business ?

Answer:

What is Limited Liability Company mean?

A limited liability company (LLC) is the US-specific form of a private limited company. It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. An LLC is not a corporation under state law; it is a legal form of a company that provides limited liability to its owners in many jurisdictions. LLCs are well known for the flexibility that they provide to business owners; depending on the situation, an LLC may elect to use corporate tax rules instead of being treated as a partnership, and, under certain circumstances, LLCs may be organized as not-for-profit. In certain U.S. states (for example, Texas), businesses that provide professional services requiring a state professional license, such as legal or medical services, may not be allowed to form an LLC but may be required to form a similar entity called a professional limited liability company (PLLC).

An LLC is a hybrid legal entity having certain characteristics of both a corporation and a partnership or sole proprietorship (depending on how many owners there are). An LLC is a type of unincorporated association distinct from a corporation. The primary characteristic an LLC shares with a corporation is limited liability, and the primary characteristic it shares with a partnership is the availability of pass-through income taxation. As a business entity, an LLC is often more flexible than a corporation and may be well-suited for companies with a single owner.

Although LLCs and corporations both possess some analogous features, the basic terminology commonly associated with each type of legal entity, at least within the United States, is sometimes different. When an LLC is formed, it is said to be "organized", not "incorporated" or "chartered", and its founding document is likewise known as its "articles of organization," instead of its "articles of incorporation" or its "corporate charter". Internal operations of an LLC are further governed by its "operating agreement," rather than its "bylaws." The owner of beneficial rights in an LLC is known as a "member," rather than a "shareholder.” Additionally, ownership in an LLC is represented by a "membership interest" or an "LLC interest" (sometimes measured in "membership units" or just "units" and at other times simply stated only as percentages), rather than represented by "shares of stock" or just "shares" (with ownership measured by the number of shares held by each shareholder). Similarly, when issued in physical rather than electronic form, a document evidencing ownership rights in an LLC is called a "membership certificate" rather than a "stock certificate".

In the absence of express statutory guidance, most American courts have held that LLC members are subject to the same common law alter ego piercing theories as corporate shareholders. However, it is more difficult to pierce the LLC veil because LLCs do not have many formalities to maintain. As long as the LLC and the members do not commingle funds, it is difficult to pierce the LLC veil. Membership interests in LLCs and partnership interests are also afforded a significant level of protection through the charging order mechanism. The charging order limits the creditor of a debtor-partner or a debtor-member to the debtor's share of distributions, without conferring on the creditor any voting or management rights.

Limited liability company members may, in certain circumstances, also incur a personal liability in cases where distributions to members render the LLC insolvent.

reference

Full Form	Category
Low Low Costs	Accounts and Finance
Limited Liability Co.	Business
Low Loan Cost	Business
Limited Liability Company	Business
Lend Lease Corporation	Business
Likely Lowcost Convention	Business
Lilly Laboratories Cell	Business
Lend Lease Corporation, LTD.	Business
Lyons, Lee, And Converse	Business
Large Load Carrier	Business
Livingston Learning Center	Community
Living Learning Community	Community
Living and Learning Center	Community
Living Learning Communities	Community
Laestadian Lutheran Church	Community
Living Learning Complex	Community
Languages Literatures and Cultures	Community
Low Level Code	Computer Assembly Language
Low Level Controller	Computing
Link Layer Controller	Computing
Low Latency Communication	Computing
Literary and Linguistic Computing	Computing
Lawyer's Liquor Cabinet	General
Long Life Cocktail	General
Lower Leg Cast	General
Lost Little Children	General
Logical L Control	General
Limited liability companies	General
London Lund Corpus	General
Local Loop Carrier	General
Little Lion Cecil	General
Logic Link Control	General
Long Lost Cousin	General
Leased Line Connection	General
Luxury Level Car	General
Lotus Ladies Cup	General
Long Life Coolant	General
Lean Limit Control	General
Left Lane Closed	General
Licensed Limousine Carrier	General
London Luxury Chauffeur Company	General
Left Lane Change	General
Lifetime Learning Credit	Governmental
Life Long Commitment	Governmental
Liga Liberal Catalana	International
Lake Louise Criteria	Medical
Long Leg Cast	Medical
Least Likely to Cure	Medical
Laughing Like Crazy	Messaging
Limited Liability Corporation	Military and Defence
Logical Link Control	Networking
Linearly Locally Connected	Networking
Last Logical Communication	Networking
Local Link Control	Networking
Laurel Leader-Call	News & Entertainment
Luxury Lightweight Camping	Sports
Local Leased Circuit	Telecommunication