limited liability company

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limited liability company

n. Abbr. LLC
A company managed by members or elected managers, like a partnership, but with the liability of the members limited to the amount of capital they have invested in the business.
American Heritage® Dictionary of the English Language, Fifth Edition. Copyright © 2016 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
References in periodicals archive ?
The treatment of LLCs as partnerships for Federal tax purposes makes LLCs an attractive choice for a business' organizational form.
While for the most part your dealings with the firm won't change, remember that LLCs and LLPs differ somewhat from other forms of ownership, so proceed with caution.
Because the IRS has not determined how single member LLCs will be classified for federal tax purposes, the LLC is not advisable for a single-owner entity even though Arkansas law allows the formation of single-member LLCs.
From the period 1982 to 1988, several other IRS rulings occurred that affected LLCs. Prior to 1982, the IRS issued several conflicting Letter Tax Rulings (LTRs) concerning LLCs.
By the end of 1992, the surge of interest in LLCs had resulted in approximately 20 States adopting some form of LLC legislation, including the corporate bellwether State of Delaware, which adopted a very flexible LLC Act.
Mark Rudd, a partner with the law firm of Rudd, Rosenberg & Hollender who represents many building owners, said "The LLCs are a vehicle an individual building owner can utilize."
If you're a member of any of these LLCs or if you're a lawyer or accountant for any of them, here are seven key points you should know about the new rules.
It should be noted that The Tax Cuts and Jobs Act provides LLCs with a 20% deduction on their pass-through business income.
Because it is possible to elect out of the default rule and have an LLC taxed as a C or S corporation, it is even common for taxpayers to form LLCs when they want corporate tax treatment.
Thus, before they structure their LLCs to avoid these taxes, they should consider their overall federal tax situation and their near-term and potential need for these benefits.