Attorney Thomas B. Burton explains what a Limited Liability Company (LLC) is, how they work, and why the LLC has become such a popular choice as a business entity for many small businesses.
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Transcript of Video: What is a Limited Liability Company (LLC)?
Today's question what is an LLC? Well LLC
stands for limited liability company and
if you pay attention when you're driving
around and look at many small businesses
these days you're often going see Joe's
Painting LLC Bob's Construction LLC
Susie's Catering LLC Why? The reason is
it's become the most popular entity form
for a small business LLC statutes were
developed in the 1980s and there are a
much simpler and flexible way of
organizing your business as a
corporation separate from your personal
activities now the biggest reason to
form an LLC is to separate your business
liabilities and assets from your
personal liabilities and assets if you
operate as a sole proprietor it means
all of your personal assets are
potentially subject to the liabilities
and creditors of the business if however
you form an LLC for your business you
can separate that business liability
from your personal liability a good
reason to do this would be if you're
taking on risk in your business to
protect your home and other assets in
case that business would turn south
you're hit by lawsuits or some other
unforeseen calamity so an LLC is a great
business form for a small business you
can talk with your lawyer about setting
one up and they can be set up relatively
easily and quickly with the
appropriate agency in your state so
consider an LLC if you're a small
business or thinking about starting a
small business and definitely talk with
your lawyer about the pros and cons of
an LLC versus a sole proprietorship
Great question, thanks for asking.
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Transcript and captions provided for ease of access for the hearing impaired.
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