Changes

{{BusinessLaw}}A '''limited liability company''' (denoted by '''L.L.C.''' or '''LLC''') is a legal form of business [[company]] in the United States offering limited [[liability]] to its owners.  In that respect, it is similar to a [[corporation]], and is often a more flexible form of [[ownership]], especially suitable for smaller companies with a limited number of owners.  Unlike a regular corporation, however, a limited liability company with one member may be treated as a disregarded entity and a limited liability company with multiple members is typically treated as a partnership for tax purposes, thereby avoiding double taxation.  It is often incorrectly called a "limited liability corporation" (instead of company).

{{BusinessLaw}}

A '''limited liability company''' (denoted by '''L.L.C.''' or '''LLC''') is a legal form of business [[company]] in the United States offering limited [[liability]] to its owners.  In that respect, it is similar to a [[corporation]], and is often a more flexible form of [[ownership]], especially suitable for smaller companies with a limited number of owners.  Unlike a regular corporation, however, a limited liability company with one member may be treated as a disregarded entity and a limited liability company with multiple members is typically treated as a partnership for tax purposes, thereby avoiding double taxation.  It is often incorrectly called a "limited liability corporation" (instead of company).

Note that the label "disregarded entity" means that for income tax purposes the entity is ignored. The entity's income and deductions are reported on its owner's tax return. For example, an LLC operating an active trade or business and owned by a single member would have its income and deductions reported on the owner's individual tax return on a Schedule C tax form. An LLC passively investing in real estate and owned by a single member would have its income and deductions reported on the owner's individual tax return on a Schedule E tax form. And an LLC owned by a corportion--in other words, an LLC with a single corporate member--would be treated as an uncorporated branch and have its income and deductions reported on the corporate tax return.

Note that the label "disregarded entity" means that for income tax purposes the entity is ignored. The entity's income and deductions are reported on its owner's tax return. For example, an LLC operating an active trade or business and owned by a single member would have its income and deductions reported on the owner's individual tax return on a Schedule C tax form. An LLC passively investing in real estate and owned by a single member would have its income and deductions reported on the owner's individual tax return on a Schedule E tax form. And an LLC owned by a corportion--in other words, an LLC with a single corporate member--would be treated as an uncorporated branch and have its income and deductions reported on the corporate tax return.

===United Kingdom and Ireland===

===United Kingdom and Ireland===

In 2002, the UK legislated [[limited liability partnership]]s ("LLPs") into existence, which approximate LLCs in the [[USA]] (unlike [[private company limited by shares]], Ltd. or P.L.C.). Member partners are taxed at the partner level, yet the LLP provides limited liability for the member partners.

In 2002, the UK legislated [[Limited_Liability_Partnership|limited liability partnership]]s ("LLPs") into existence, which approximate LLCs in the [[USA]] (unlike [[Limited_Company|private company limited by shares]], Ltd. or P.L.C.). Member partners are taxed at the partner level, yet the LLP provides limited liability for the member partners.

===Japan===

===Japan===

==See also==

==See also==

*[[Limited liability]]

*[[Entity Type|Types of companies]]

*[[Types of companies]]

*[[Series LLC]]

==External links==

==External links==