what does LLC means. I know the full form of it. I want to know your definition in simple english ( english is my 2nd language). I read the internet, i still don't understand it.
This seems like a simple definition:
"Business owners form a Limited Liability Company (LLC) to reduce their personal liability. If you operate as a sole proprietor or partnership, you are personally responsible for any business debts or lawsuits against your business. Nearly everything you own can be at risk.
"When you set up an LLC, you separate your business and personal identities. This helps protect your personal savings, your house, your car, etc. LLCs can also provide business owners with other benefits like tax savings."
From:
http://www.llc.com/
thank you Mr Sue :)
i mean Ms Sue sorry :o :)
No problem at all! And thank you for clarifying my gender.
In simple English, an LLC, which stands for Limited Liability Company, is a type of business structure that helps protect the owners' personal assets, like their savings, house, and car, from being used to pay off business debts or legal claims. By forming an LLC, the owners separate their personal and business identities, reducing their personal liability.
For example, if you run a business as a sole proprietorship or partnership and someone sues your business or you accumulate a lot of debt, you would be personally responsible for paying it off. However, if you have an LLC, your personal assets are typically protected, and only the assets of the business are at risk.
In addition to personal asset protection, LLCs can provide other benefits like potential tax savings. This means that forming an LLC may have advantages for business owners beyond just limiting their personal liability.