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A limited liability company (LLC) is the United States-specific form of a private limited company. It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation . [1]
Advantages and disadvantages Advantages. Public companies possess some advantages over privately held businesses. Publicly traded companies are able to raise funds and capital through the sale (in the primary or secondary market) of shares of stock. This is the reason publicly traded corporations are important; prior to their existence, it was ...
Limited liability is a legal status in which a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a corporation, company or joint venture. If a company that provides limited liability to its investors is sued, then the claimants are generally entitled to collect only against the assets of ...
LLC. Corporation. Ownership. Can be owned by one or multiple members. Owned by shareholders. Paperwork. Annual business filings can be handled by the business owner or manager
Disadvantages of LLCs Lack of resilience: Since LLCs are managed at the state level, regulations vary greatly. However, in some states, if a member of the LLC leaves or dies, the LLC must be ...
Cons. Personal liability. Can be expensive. Limited disclosure requirements. Pros of LLC loans. LLC businesses are a popular funding solution for small business owners — and for good reasons.
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