Please Define "llc" For Me!

Business By cakedout Updated 23 May 2008 , 7:28pm by cakedout

cakedout Posted 23 May 2008 , 4:00pm
post #1 of 4

OK, so I'm totally out of the loop when it comes to some of this business terminology stuff. icon_redface.gificon_cry.gif I guess I really need to shell out the money and take a small business class....

in the meantime, could you please define what an "LLC" business is? icon_redface.gif

thanks-

3 replies
JoAnnB Posted 23 May 2008 , 4:59pm
post #2 of 4

Limited Liability Corporation. You should really seek professional advice before you make this decision. Your particular situation will define which kind of legal entity your business requires.

playingwithsugar Posted 23 May 2008 , 5:07pm
post #3 of 4

It means Limited Liability Company. What an LLC does is it limits liability to the company, not the individual owner, the way a sole proprietorship would.

In other words, if you start a business as an LLC, and someone tries to sue, only the company can be sued, not the individual who owns the company.

Another benefit to the LLC is that the gross profits are not federally taxed twice, as a corporation is. The net profits (after taxes) funnels directly to the owners, the way the net profits from a sole proprietorship would.

State and Local tax regulations for LLC's vary from state to state.

Here's the wikipedia page on LLC's -

http://en.wikipedia.org/wiki/Limited_liability_company

When the time comes for me to start my business, I will be using the LLC format.

Theresa icon_smile.gif

cakedout Posted 23 May 2008 , 7:28pm
post #4 of 4

Thanks so much!! I appreciate the help...and the website. icon_biggrin.gifthumbs_up.gif

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