Browse Definitions :
Definition

limited liability company (LLC)

A limited liability company (LLC) is a hybrid unincorporated business structure that combines the pass-through tax model of partnerships and sole proprietorships with the protection of individual assets provided by the C corporation.

The owners of an LLC are known as members. Depending on the laws of the state where the LCC is located, an individual member may be a single person, a partnership, a corporation or another LCC. 

Unlike a corporation, the LCC is not considered a separate entity. All profits and losses are passed through to members, who report them on their individual tax returns. Otherwise, individual members are not held financially liable beyond an established fixed sum, which is typically equal to their investment in the organization. The LCC files separately as a sole proprietorship, a partnership or a corporation, depending on its business structure.

Once registered, a limited liability company is required to add the letters LCC to its business name. The limited liability company is known in some other countries as a private limited company.

This was last updated in December 2015

Continue Reading About limited liability company (LLC)

SearchCompliance
  • pure risk

    Pure risk refers to risks that are beyond human control and result in a loss or no loss with no possibility of financial gain.

  • risk reporting

    Risk reporting is a method of identifying risks tied to or potentially impacting an organization's business processes.

  • risk avoidance

    Risk avoidance is the elimination of hazards, activities and exposures that can negatively affect an organization and its assets.

SearchSecurity
  • script kiddie

    Script kiddie is a derogative term that computer hackers coined to refer to immature, but often just as dangerous, exploiters of ...

  • cipher

    In cryptography, a cipher is an algorithm for encrypting and decrypting data.

  • What is risk analysis?

    Risk analysis is the process of identifying and analyzing potential issues that could negatively impact key business initiatives ...

SearchHealthIT
SearchDisasterRecovery
  • What is risk mitigation?

    Risk mitigation is a strategy to prepare for and lessen the effects of threats faced by a business.

  • fault-tolerant

    Fault-tolerant technology is a capability of a computer system, electronic system or network to deliver uninterrupted service, ...

  • synchronous replication

    Synchronous replication is the process of copying data over a storage area network, local area network or wide area network so ...

SearchStorage
  • gigabyte (GB)

    A gigabyte (GB) -- pronounced with two hard Gs -- is a unit of data storage capacity that is roughly equivalent to 1 billion ...

  • MRAM (magnetoresistive random access memory)

    MRAM (magnetoresistive random access memory) is a method of storing data bits using magnetic states instead of the electrical ...

  • storage volume

    A storage volume is an identifiable unit of data storage. It can be a removable hard disk, but it does not have to be a unit that...

Close