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Finance: What is an LLC? 4 Views
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Description:
What is an LLC? LLC stands for Limited Liability Company. It is a hybrid type of company that combines the corporate protections of separating corporate and personal assets and liabilities with tax advantages and other elements of partnerships and sole proprietorships. The LLC’s tax liabilities are paid at the shareholder’s personal level, so the LLC only files returns without payments. Unlike the corporation, the LLC cannot outlive its founders unless there are continuation agreements. Additionally, new shareholders can be added without corporate resolution in the LLC.
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- Terms and Concepts / Accounting
- Terms and Concepts / Board of Directors
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- Terms and Concepts / Incorporation
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Transcript
- 00:00
finance a la shmoop. what is an LLC? LLC no that's not a rapper, that's a limited
- 00:10
liability company or look as professionals in the business pronounce
- 00:15
it. well why do you want one? because limiting your liability is a [man explains]
- 00:19
good thing if you're the one potentially liable for that stooge who slips on a
- 00:24
banana peel in your lobby waiting area and then Sue's you and wins. if you start
Full Transcript
- 00:29
building your own company as an individual and not as an LLC and you get
- 00:34
sued for whatever, and you lose well you could lose everything you own.
- 00:38
that is the lawyers will come after your house your car your poodle your signed
- 00:43
Mila Kunis photograph collection, and legally well they'll be entitled to take
- 00:48
all of it. if you have existed under the legal structure of an LLC however, well [legal structures pictured]
- 00:53
the most you can be liable for is the assets of the business itself. yes
- 00:58
they'll take the company computer the remaining 17 months of lease on the
- 01:02
company building, and all your staplers and posted thingies but legally they
- 01:06
won't be able to go after your home your car your poodle or your autograph
- 01:10
collection. Mila is safe whew. so LLC's are a good thing they cost only a few
- 01:16
hundred bucks to set up these days, hi LegalZoom. so before you start up a lava
- 01:20
lamp company of your own think about setting up an LLC first. Mila and your [lava lamps in a row]
- 01:25
poodle gregory will thank you for it.
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