Define LLC - Definition of LLC

The letters “LLC” are an abbreviation for the term limited liability company. A limited liability company is one authorized by state law. Although exact characteristics vary by state, the most common characteristics of the limited liability company are that it has:

1. limited liability, that is, the owner(s) of the company are not liable for more than the capital they have invested in the business;

2. managed by members or managers (owner(s) can be members/managers)

3. limitations on the transfer of ownership.

LLC's are becoming an increasingly popular way to start a business or form a business, because LLC's are generally a less complicated business structure than a corporation, and provide a significant amount of protection.

Define LLC, definition of llc—Now Learn about starting an LLC