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A Limited liability company, more commonly known as LLC, is a business structure. The term is basically self-explanatory: The owners of a limited liability company are limited as to what they are financially responsible for if the business goes into debt. There is no minimum or maximum number of members needed to form a LLC. In fact,... more »
When starting a corporation, there are several corporate forms to choose from. Three of those are different types of limited liability corporations. more »
Limited liability insurance only covers a business owner for the amount of the company or partnership that they actually own. This limits their exposure to risk to a fixed portion of the asset in question, reducing both the amount of money that they need to pay for insurance and how much is paid out in case the policy is actually... more »
A limited liability company, known as an LLC, is a business entity designed to protect the personal assets of its owners. The LLC combines the favorable tax treatment of a sole proprietorship and the liability protection of a corporation. Because an LLC is easier to set up, and has fewer regulations than a corporation, it is a popular... more »
Establishing your business as a legal entity separates your personal assets from your business assets and protects both. The most common business structure is the limited liability corporation. Filing the paperwork to incorporate as a limited liability corporation is a fairly easy process. more »
A limited liability corporation, also known as an LLC for short, can be a good choice for a business owner who like the benefits of a corporation,... more »
Limited liability partnerships (LLPs) combine the shielded liability aspect of corporations with many of the same practices of a partnership, such... more »
A limited liability partnership (LLP) shields the personal wealth of each member of the partnership, and provides protection from lawsuits that... more »
When a small business wants to grow beyond the scope of a sole proprietorship or partnership,the business can form as a complete corporation or it... more »
A limited liability partnership is a business partnership where some or all of the partners have limited financial liability. This business... more »
Limited liability is a concept whereby a persons financial liability is limited to a fixed sum, most commonly the value of a persons investment in a company or partnership with limited liability. In other words, if a company with limited liability is sued, then the plaintiffs are suing the company, not its owners or investors. A shareholder in a limited company is not personally liable for any of the debts of the company, other than for the value of his investment in that company. This usually takes the form of that persons dividends in the company being zero, since the company has no profits to allocate. The same is true for the members of a limited liability partnership and the limited partners in a limited partnership.Hannigan 2003 By contrast, sole proprietors and partners in general partnerships are each liable for all the debts of the business (unlimited liability).
Although a shareholders liability for the companys actions is limited, the shareholder may still be liable for its own acts. For example, the directors of small companies (who are frequently also shareholders) are often required to give personal guarantees of the companys debts to those lending to the company. They will then be liable for those debts in the event that the company cannot pay, although the other shareholders will not be so liable. This is known as co-signing.
History
In the UK, it became more straightforward to incorporate a joint stock company following the Joint Stock Companies Act 1844, although investors in such companies carried unlimited liability until the Limited Liability Act 1855. There was a degree of public and legislative distaste for a limitation of liability, with fears that it would cause a drop in standards of probity.Shannon (1931)Saville (1956)Amsler et al. (1981) The 1855 Act allowed limited liability to companies of more than 25 members (shareholders). Insurance companies were excluded from the Act, though it was standard practice for insuranc read more at » http://en.wikipedia.org/wiki/Limited+liability
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