Business Registration

Sole Proprietorship * Partnership * Limited Liability Company * Corporation

Limited Liability Company
It is an entity with similar characteristics as a corporation and a partnership. It provides its owners with corporate-like protection against personal liability. However, it is treated as a noncorporate business organization for tax purposes. The owners of an LLC are called members and are similar in some respects to shareholders of a corporation. A member can be a natural person, a corporation, a partnership, or another legal association or entity. LLCs in most states must be formed and managed by two or more members.
Every LLC must have an operating agreement, which is generally defined as the agreement between the members that govern the affairs of the LLC. The operating agreement typically provides the procedures for admitting new members, outlines the status of the LLC upon a memberís withdrawal and outlines the procedures for dissolution of the LLC.