The Liability Of Members If Company Is Limited By Shares
A limited liability company is a type of corporate structure used in the US that shields its owners from being held personally liable for the obligations of the firm. A hybrid entity known as an LLC combines elements of a corporation with those of a partnership or a sole proprietorship. State legislation allows limited liability firms, and each state has its own set of rules controlling them. Members of an LLC are its owners. Many jurisdictions don't impose ownership restrictions, so anyone including people, businesses, people from other countries, foreign companies, and even other LLCs can join. However, some organizations including banks and insurance companies—cannot incorporate LLCs. A formal business arrangement known as an LLC needs to submit articles of organization to the state. An LLC offers more flexibility and security for its investors than a corporation and is simpler to set up. Structure of LLC Those who own an LLC are referred to as members much like corporatio