A limited liability company (LLC) is a relatively new business entity in the United States. The first modern LLC statute was adopted in Wyoming in 1977 and by 1997 every state allowed the creation of a limited liability company. Its basic features are
* its owners have limited liability for the entity's debts and obligations, similar to the status of shareholders in a corporation or limited partners in a limited partnership, and
* its income and losses are normally passed through to the owners as if it were a partnership (or sole proprietorship, in the case of a single member LLC owned by an individual).
An LLC is probably most like a limited partnership, except that a limited partnership, unlike an LLC, is required to have at least one general partner liable for the debts and obligations of the partnership. |