What is a LLC?

A Limited Liability Company (LLC) is a business structure that combines elements of both corporations and partnerships. It allows the owners (called "members") to limit their personal liability when operating the business. In North Carolina, LLCs are created by filing Articles of Organization with the North Carolina Secretary of State. The LLC can be managed by the members, or they can elect to have a manager oversee the business. The LLC is responsible for keeping records, filing an annual report, and submitting taxes. LLCs provide a flexible structure for businesses to operate. With an LLC, members are still able to be taxed like a sole proprietorship while having the limited liability of a corporation. Additionally, LLCs do not have to have all the formalities that corporations do, like annual shareholder meetings and maintaining corporate records. Overall, the LLC structure is a popular option for small businesses operating in North Carolina. It has many advantages such as limited liability while avoiding many of the additional paperwork and formalities required of corporations. While members still have to submit an annual report and taxes, LLCs are a great way to protect your personal assets from the risks of running a business.

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What is a LLC?

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