What is an LLC – Limited Liability Company?
What Does LLC Stand For?
LLC stands for Limited Liability Company.
What is an LLC?
An LLC is generally a business entity having one or more members that is organized under the California LLC provisions. Forming your business as a limited liability company helps to protect you against lawsuits, significantly cuts down on paperwork compared to corporations and other legal entity types, prevents your company from being taxed twice, and helps to present your business as more credible. It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. An LLC is not a corporation in and of itself; it is a legal form of a company that provides limited liability to its owners in many jurisdictions. LLCs are well-known for the flexibility that they provide to business owners; depending on the situation, an LLC may elect to use corporate tax rules instead of being treated as a partnership. A limited liability company (LLC) is a hybrid legal entity having certain characteristics of both a corporation and a partnership or sole proprietorship (depending on how many owners there are). An LLC is a type of unincorporated association distinct from a corporation. The primary characteristic an LLC shares with a corporation is limited liability, and the primary characteristic it shares with a partnership is the availability of pass-through income taxation. It is often more flexible than a corporation, and it is well-suited for companies with a single owner.
Who Can Be an LLC Member?
A member of an LLC may be an individual, partnership, limited partnership, trust, estate, association, corporation, another LLC, or other domestic or foreign entity.
What Do You Need to Make Your LLC official?
Requirements For Filing Your Articles of Organization
In order to file your Articles of Organization with the Secretary of State they require the LLC to have one member, the last words of the name on any LLC must be “limited liability company”, the abbreviation, and “LLC” or L.L.C. The name of an LLC may contain the name of one or more LLC members however, it cannot be one that the Secretary of State determines is likely to mislead the public and it cannot generally be the same as, or resemble so closely as to tend deceive, the name if an existing domestic LLC that has filed Articles of Organization, the name of a registered foreign LLC, or a name that has already been reserved by an LLC or foreign LLC.
What CANNOT Be on Your LLC Name?
However, you CANNOT use “bank,” “trust,” “trustee,” “Incorporated,” “inc.,” “Corporation,” and “Corp.” The LLC name CANNOT contain words like “Insurer” or “Insurance Company” or any other words suggesting that it is in the business of issuing policies of insurance and assuming risks.
What is the LLC Filing Fee?
The filing fee of your Articles of Organization is $70.00 and $75.00 to receive a certified copy of your Articles of Organization.
If you are looking for more guidance and need help forming your LLC, Slate Law regularly hosts San Diego LLC Workshops where you can have hands on guidance in forming your Limited Liability Company.
For more information, contact Slate Law. We're located in San Diego, California.