LLC
A U.S. legal-entity form combining the limited liability of a corporation with the pass-through taxation of a partnership or sole proprietorship.
A Limited Liability Company (LLC) is a state-formed entity that gives owners (called "members") limited liability for company debts while defaulting to pass-through taxation. Single-member LLCs are taxed as disregarded entities; multi-member LLCs are taxed as partnerships; either can elect S-Corp or C-Corp tax treatment via Form 8832 / 2553. LLCs are the dominant entity form for non-resident U.S. business owners because they are simple to form and operate without U.S. residency.
Also known asLimited Liability Company
Related terms
- C-Corp — A U.S. corporation taxed under Subchapter C of the Internal Revenue Code, with corporate-level tax on profits …
- S-Corp — A U.S. corporation that elects Subchapter S tax treatment to pass profits through to shareholders' personal re…
- Single-Member LLC — An LLC with only one owner, taxed by default as a disregarded entity (sole proprietorship for tax purposes).…
- Multi-Member LLC — An LLC with two or more owners, taxed by default as a partnership.…
- Wyoming LLC — An LLC formed under Wyoming's LLC Act, the first LLC statute in U.S. history (1977) and widely considered the …
- Operating Agreement — The internal governing document of an LLC that specifies ownership, management, voting, profit distribution, a…