| Many ask the question of What Does LLC Stand For? | | | | type of legal entity offers a single layer of taxation |
| They are usually looking for one of two answers: (i) | | | | which minimizes taxes for owners and even allows |
| what do the actual letters stand for and where did it | | | | active members to take a deduction against other |
| come about; or (ii) what benefits and features does an | | | | income if the business generates losses. |
| LLC provide? | | | | The benefits do not end with protection and taxes. |
| LLC Stands for Limited Liability Company | | | | The limited liability company also allows flexibility for |
| The LLC is a creature of state laws. In 1977, Wyoming | | | | business owners to tailor who they want their business |
| was the first state to enact a law that gave birth to a | | | | to operate and be managed. You are not forced to fit |
| limited liability company. Since then, every state in the | | | | into a one size fits all governance structure. |
| United States has passed a set of laws which allow | | | | Business owners want to spend their time building their |
| for a legal entity called a limited liability company to be | | | | business and not maintaining legal entities or having to |
| created under the law. | | | | keep up with legal compliance requirements. LLC laws |
| The main reason the LLC was born is because small | | | | were specifically designed to make the use of this |
| business owners needed a legal entity that was more | | | | vehicle easy. There are minimal requirements to form |
| catered form them as compared to the corporation | | | | and maintain a limited liability company. |
| entity which was more suitable for larger businesses. | | | | Another benefit is that the use of a legal entity for a |
| Lawmakers want to encourage small business as it | | | | business conveys a more professional and official |
| drives our economy and creates jobs. Accordingly, | | | | image. Customers see that the business is a limited |
| what the LLC provides is a legal entity which provides | | | | liability company and know that the owners of the |
| benefits that are specifically tailored for the small | | | | business engaged in some serious business planning. |
| business owner but also has the flexibility to | | | | This is great for getting more business. |
| accommodate larger businesses as well. | | | | So, when one asks what does LLC stand for, the |
| WHAT CAN A LIMITED LIABILITY COMPANY | | | | answer is that it stands for the most popular legal |
| OFFER TO A SMALL BUSINESS | | | | entity vehicle for small business. For the low cost to |
| The LLC provides business owners with a shield of | | | | form one, a business owner gets tremendous benefits |
| protection. Owners are not personally liable for the | | | | and advantages. |
| debts and obligations of the business. In addition, this | | | | |