A few of our club members are business owners so it’s important we know how to run the business in a smart, legal way. So what’s an LLC, a business term most of us have heard and what does it do?
LLC stands for limited liability company. This is a business enterprise the uses parts of corporate and partnership structures to provide limited liability to its business owner.
Limited liability means your potential liability is limited to a fixed amount of money. Often this is the value of the person’s investment in the company. Therefore, a shareholder in an LLC is not responsible personally for the liabilities of the company. One advantage to developing an LLC is the opportunity to choose how the company is taxed. Additionally, you can set up an LLC online using a tool like LegalZoom.