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Company Registration India » Limited Companies » Limited Liability Company
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 Limited Liability Company
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A limited liability company (LLC) is a type of business ownership combining
- Many features of corporation and partnership structures.
- Is not a corporation or a partnership.
- May be called a limited liability corporation, the correct terms is limited liability company.
- Owners are called members not shareholders or partners.
- Numbers of members are unlimited and may be individuals, corporations, or other LLC's.
Limited liability Company Definition
A limited liability company, commonly called an "LLC" is a business structure, which fits somewhere between the partnership and the corporation. Like owners of partnerships or sole proprietorships, LLC owners report business profits or losses on their personal income tax returns, the limited liability company (LLC) itself is not a separate taxable entity.
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Limited Liability Company Advantages
Limited Liability: Owners of a limited liability company have the liability protection of a corporation. A Limited Liability company exists as a separate entity much like a corporation. Members cannot be held individually liable for debts unless they have signed a personal guarantee.
Flexible Profit Distribution: - Limited Liability Company can select varying forms of distribution profits. Unlike a common partnership have much more flexibility.
No Minutes: Corporations are needed to keep formal minutes, have meetings, and record resolutions. The Limited Liability company business structure requires no corporate minutes or resolutions and is easier to operate.
Flow Through Taxation: All your business losses, expenses and profits flow through the company to the individual members. You keep away from the double taxation of paying individual and corporate tax.
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