Limited Liability Company (LLC)

Back in 1983 when I started National Research Services, Inc., there were no LLCs. LLC stands for Limited Liability Company. Now they seem all the rage.

From Wikipedia, the free, on-line encyclopedia:

A limited liability company (abbreviated L.L.C. or LLC) in the law of the vast majority of United States jurisdictions is a legal form of business company that provides limited liability to its owners. Often incorrectly called a "limited liability corporation" (instead of company), it is a hybrid business entity having certain characteristics of both a corporation and a partnership or sole proprietorship (depending on how many owners there are). The primary characteristic an LLC shares with a corporation is limited liability, and the primary characteristic it shares with a partnership is the availability of pass-through income taxation. It is often more flexible than a corporation and it is well-suited for companies with a single owner.

Be aware, though, of what I said before. Your LLC will not protect you when you've personally guaranteed a loan or personally guaranteed that you'll pay your lease, or your product has broken because it was defective and someone was harmed. You're going to get sued along with your LLC.

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