If you’re a part of my “All Up In Yo’ Business” community, hearing me discuss LLCs is nothing new. Such as, How to Pay Yourself From Your Business, How Do I Contribute Money to My LLC? and a lot more!
However, we haven’t covered yet is really one of the most basic questions: what exactly is an LLC?
What does “LLC” mean?
“LLC” stands for “limited liability company.” The “limited liability” part means the business owners (which are the “members”) are not personally responsible for the debt and liabilities of the business. If the limited liability is sued, the members do not risk losing their own assets in the lawsuit. To say it simply, LLCs are a form of protection from liability.
A limited liability company is a business entity that is recognized and formed at the state level, under state statutes. In other words, it’s the STATE, not the federal government, that you’ll deal with to form and maintain your limited liability company. Similarly the laws of the state where the business is formed will govern the business operations.
While an LLC is a very popular entity for small businesses. But, it’s not the best fit for every business. That’s why it is always a good idea to consult with an attorney who is licensed in your state to determine if it’s the right choice for you.
Ready to get started?
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