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What is a Limited Liability Company (LLC)?

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.

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.

© 2018 Law Office of Thomas B. Burton. All Rights Reserved.

Transcript and captions provided for ease of access for the hearing impaired.

For questions about this topic, or to suggest a topic for a future blog post, please contact my office.

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