limited liability company (LLC)

Popular Terms
Relatively recent type of US business structure that combines the limited personal liability feature of a corporation with the single taxation feature of a partnership or sole-proprietorship firm. Its profits and tax benefits are split any way the stockholders/ shareholders (whether individuals or other firms) choose. Tax return for a LLC is filed with the taxation authorities only for the purpose of information, and each shareholder files own tax return separately. Also called company limited by share. See also limited company.

For more information, see The Difference between an S Corporation and an LLC.

Use 'limited liability company (LLC)' in a Sentence

The IRS doesn't recognize the limited liability company, as they're on the state level, not the federal, and unless elected otherwise, treated as a disregarded entity.
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You may want to set yourself up as a limited liability company so that you do not have to much of a burden on you.
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They were a limited liability company and that meant a few things and we knew that we would be better in the long run because of our choice.
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