Limited Liability Company


LLC. A type of company, authorized only in certain states, whose owners and managers receive the limited liability and (usually) tax benefits of an S Corporation without having to conform to the S corporation restrictions. An LLC is an unincorporated association, is relatively flexible and simple to set up (making it appealing for small businesses with only one owner), and allows for pass-through income taxation. LLCs were not widely used in the United States until the early 1990s.

For more information, see The Difference between an S Corporation and an LLC.

Use this term in a sentence

The idea of setting their business up as a limited liability company, with less restrictions, was very appealing to the couple that was starting their own business.

​ Was this Helpful? YES  NO 11 people found this helpful.

They were a limited liability company, which surprised me because our state did not authorize it.

​ Was this Helpful? YES  NO 9 people found this helpful.

The Limited Liability Company operated in a special way that took on some risk but hedged their potential losses individually.

​ Was this Helpful? YES  NO 2 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
partnership limited company