Posted by Ernest Tew on February 16, 2003 at 09:59:56:
LLC is the abreviation for limited-liability company. For many, a LLC offers ?the best of both worlds.? It combines the limited liability features of a corporation and the flexibility and tax advantages of a partnership. The members even have a choice of whether they want to be taxed as a corporation or partnership.
In short, a limited-liability company is often suitable for joint ventures, real estate investments, large high-tech companies?or even the simplest family-owned business. A limited-liability company can also serve as a ?safe haven? for the bulk of one?s wealth?provided the individual has a properly designed system in place for doing business and making investments.
While neither the manager nor the members of a LLC have any personal liability, the LLC itself could be sued. Therefore, steps should be taken to avoid letting the LLC accumulate assets that would be attractive to preditors.