Series 79: Limited Liability Companies

Limited Liability Companies

The limited liability company (LLC) is a relatively new form of entity that combines aspects of the corporate form with elements of traditional partnerships, but is different from either. A limited liability company is not a corporation, and LLCs do not issue shares; instead, the owners are members of the LLC.

An LLC is formed under state law, and the laws governing limited liability companies vary from state to state. In most states, LLC status is available to most types of businesses, and LLC membership is open to individuals (including resident aliens) as well as corporations, partnerships, and other business entities. Most states allow single-member LLCs, and it is now very common for corporations, including large