LLC - Limited Liability Company


Business Law

The LLC is a separate legal entity that enjoys the same liability protections as the S and C corporations. The greatest distinction between the LLC and the S or C corporations is that the LLC can choose its own tax treatment. For example, an LLC can choose to be taxed as an individual, a partnership, or as an S corporation.

PLEASE NOTE: Even owners/shareholders and managers of companies that are S, C or LLCs can still be personally liable (meaning there is no liability protection) for unpaid wages, overtime wages, and state and federal penalties imposed for failure to pay all of an employees wages and overtime wages. See our discussion under Claims for Unpaid Wages and Overtime.

In order to select the best legal entity, consult with an attorney and an accountant in order to discuss all of the options and to determine what is best for you.