What Does LLC Mean on the End of a Company Name?

You may have seen businesses with an LLC at the end of their names and wondered why it was there. LLC stands for limited liability corporation and it is becoming increasingly popular route for business owners.

Benefits

An LLC enjoys the benefits of being taxed like a sole proprietorship while only possessing limited liability like a corporation.

Compared to Corporations

Unlike traditional corporations, an LLC does not have to continuously meet certain requirements and criteria to remain an LLC.

Ownership

Another great benefit of an LLC is that it allows for multiple owners. In addition, there is normally a specifically assigned managing member who runs the daily operations of the business.

Considerations

Many would-be investors are still uncertain about the LLC business structure since it is a relatively new system (1977). As a result, incorporating your business using the traditional method may help to attract more conventional investors.

Summary

Essentially, a LLC provides the owners with a flexible tax structure while shielding them from sole liability. It is a great way for a business owner to maintain his flexibility as a business without risking his livelihood in regards to liability.

References

• All Business: Advantages of a Limited Liability Company
• CNNMoney: How Do I Become an LLC?
• Gaebler: Forming an LLC