Definition: An LLC (Limited Liability Company) is a legal status of a commercial entity that combines the limited liability feature of corporations with the tax and flexibility advantages of a partnership. A single individual, multiple individuals, corporations or even other LLC businesses can be LLC members.
Many single-owner ecommerce start-ups opt to register as an LLC rather than operate under a sole proprietorship, and many multi-owner online companies that could choose partnership status choose LLC status instead. The advantages of being an LLC listed below also hold true for many brick-and-mortar businesses:
A few of the most notable disadvantages of being an LLC are:
Each state will have minor differences in how to form an LLC, but the basic steps are as follows: