What is a LLC?

A Limited Liability Company (LLC) is a type of business entity recognized by the state of Delaware that offers its owners limited personal liability for debts and other obligations of the business. A LLC is similar to a corporation, but it offers owners more freedom in how the company is managed and additional tax advantages. It combines the characteristics of a corporation with the tax advantages of a partnership, so it offers the best of both worlds. The owners of a LLC are called “members” and they are shielded from personal liability for the obligations and debts of the LLC. This means that if the LLC faces a lawsuit or owes money to creditors, the owners will not be held personally responsible unless they have personally guaranteed the debt. Additionally, Delaware LLCs are not required to hold regular meetings and to keep minutes of its decisions. This makes them a popular choice for small business owners who want flexibility and fewer rules. All in all, a LLC offers a business structure that provides limited personal liability, flexibility, and certain tax advantages for its members.

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What is a LLC?

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