Define: Limited Liability Company

A Limited Liability Company (LLC) is a legal business structure that combines the limited liability protection of a corporation with the flexibility and tax benefits of a partnership.

To form an LLC, you typically need to file articles of organisation with the appropriate state agency, pay the required fees, and comply with any additional state-specific requirements.

Some advantages of forming an LLC include limited personal liability for the owners, pass-through taxation, flexibility in management and ownership structure, and ease of formation and maintenance.

Yes, a single person can form an LLC. This is known as a single-member LLC, and it offers the same liability protection and tax benefits as a multi-member LLC.

Ongoing compliance requirements for an LLC typically include filing annual reports, maintaining proper records and documentation, holding regular meetings, and complying with any state-specific regulations.

Yes, an LLC can choose to be taxed as a corporation by filing an election with the Internal Revenue Service (IRS). This is known as an “S-Corporation” or “C-Corporation” election.

Yes, an LLC can have employees. As an employer, the LLC must comply with federal and state employment laws, including payroll taxes, workers’ compensation, and employment discrimination laws.

Yes, an LLC can be owned by another LLC. This is known as a “parent-subsidiary” relationship, where the owning LLC is referred to as the “parent” and the owned LLC is referred to as the “subsidiary.”

Yes, an LLC can be dissolved voluntarily by the owners or involuntarily by a court order. The process for dissolution typically involves filing dissolution documents with the state and settling any outstanding debts or obligations.

Yes, an LLC can be sued. However, the owners’ personal assets are generally protected from the LLC’s liabilities, meaning that their liability is limited to their investment in the company.