Limited Liability Company
A limited liability company (LLC) is a business whose members are protected from personal liability for the acts and debts of the company in the same way as a corporation but can opt to be taxed as a partnership.
For limited liability companies:
- Members do need to file organization papers with the state.
- An operating agreement governs the rights and responsibilities of the members and how the business will be run.
- The LLC can choose to be taxed as either a partnership or a corporation.
- The SBA notes that LLCs provide the benefits of limited liability and less recordkeeping than corporations, but members may have to deal with dissolution if a member leave or dies, although the operating agreement can be drafted to address this situation.