Limited Liability Company

Limited Liability Company

The Limited Liability Company (LLC) business model amalgamates both the characteristics of a solitary proprietorship and corporation. This type of business model is eligible to pass the taxation rules of sole ownership and corporations. However, the liability of the owners is limited in the LLC model and this model is not usually considered as a separate entity. The businesses that come under the LLC doesn’t have to pay taxes or bear the losses emanating from tax filings. Instead, the owners have to report the profit and losses of the company in their personal income tax returns. Similar to the Corporations, LLC based companies are secured from disclosing personal liabilities.