What is a Limited Liability Company (LLC)?

By Leanna Kelly When they incorporate, many businesses form as Limited Liability Companies (LLCs). An LLC is a corporate structure that’s a separate entity from the person(s) forming it. It also requires the owners to report the company’s profits and losses on their personal income tax returns. However, the owners cannot be personally held liable for the company’s losses or debts. As the name suggests, it’s a way to limit the liability founders may face in the event of bankruptcy or other hardship for the company.
LLCs serve a number of purposes; however, they’re always used as a way to legally protect the …read more