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LSDefine

Simple English definitions for legal terms

LLC

Read a random definition: jus singulare

A quick definition of LLC:

A Limited Liability Company (LLC) is a type of business that combines features of partnerships and corporations. It allows flexibility in how the business is organized and how profits are shared among its owners, who are called members. An LLC can choose to be taxed like a partnership or a corporation. The members of an LLC have limited personal liability for the business, meaning their personal assets are protected if the business is sued or goes into debt. To form an LLC, it must be registered with the state and have a certificate of organization. The rules for running an LLC are usually outlined in an operating agreement. However, if an LLC is used to deceive creditors or is not run as a separate entity from its owners, the courts may hold the owners personally responsible for the business's debts and obligations.

A more thorough explanation:

Definition: Limited Liability Company (LLC) is a type of business organization that combines features of partnerships and corporations. It offers flexibility in structuring the business to meet the specific needs of its investors. An LLC can have members who each own and control equal parts of the business, or it can be managed by some members with different control and profit allocations among all the members. An LLC can also choose to be taxed like a partnership or a corporation. The investors in an LLC have limited personal liability in the business.

For example, let's say that John and Jane want to start a business together. They decide to form an LLC so that they can share ownership and control of the business equally. They also want to limit their personal liability in case the business incurs debts or legal issues. By forming an LLC, John and Jane can achieve these goals.

LLCs must register with the state and create certificates of organization. The structure and management of the LLC are typically outlined in an operating agreement. Compared to corporations, LLCs have fewer guidelines and procedures for investors to follow. However, courts may "pierce the corporate veil" and hold investors personally liable if the LLC is used to defraud creditors or if it operates as an extension of an investor rather than a separate entity.

Example: Sarah and Tom want to start a small business selling handmade crafts. They decide to form an LLC so that they can share ownership and control of the business equally. They also want to protect their personal assets in case the business is sued or incurs debts. By forming an LLC, Sarah and Tom can achieve these goals while still having flexibility in how they structure and manage the business.

This example illustrates how an LLC can be used by small business owners to protect their personal assets while still having control over the business. It also shows how an LLC can be tailored to meet the specific needs of its investors.

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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