Home | Business
A limited liablity company or LLC is a form of business offering limited liability to its owners. In the LLC, all owners are protected from personal liability in case of business debts and claims. This feature is known as limited liability. This means that if the business owes money or faces a court case for some reason, only the assets of the business are at risk and not the personal property of the owners.The LLC does not have restrictions regarding who can be a member of the LLC, as in the case of corporations. The LLC has greater flexibility for distribution of rights, profits and assets, compared to a corporation. The LLC is not subject to the same corporate formalities that are required in case of a corporation. However, the LLC is expected to maintain appropriate LLC records and bookkeeping. The LLC must also maintain the minutes of the board's meetings.For the formation of the LLC, members have to file with the state. The existence of the LLC begins by filing of the Articles of Organization with the Secretary of State. The articles have to be in the legally-acceptable format. Members have to pay a state-filing fee. To lawfully complete the formation of the LLC, members have to enter into an Operating Agreement. This Operating Agreement may come into existence before or after filing of Articles of Organization and may be in writing or oral. Each state may have different rules for the formation of the LLC. In the case of corporate by-laws or partnership agreements, the operating agreement can help in defining the company's profit sharing, ownership, responsibilities and ownership changes.When the LLC wishes to terminate continuation, they have to file Articles of Dissolution, sometimes referred to as a Certificate of Dissolution or Certificate of Cancellation.
Article Source: http://www.content.onlypunjab.com
Limited Liability Corporations provides detailed information on Limited Liability Corporation, Limited Liability Corporation Definition, Limited Liability Corporation Advantages, Limited Liability Corporation Forms and more. Limited Liability Corporations is affiliated with S Corporation Forms.
Please Rate this Article
5 out of 54 out of 53 out of 52 out of 51 out of 5
Not yet Rated
