- Key Terms
- Limited Liability CompanyLimited Liability Company
Limited Liability Company
Also known as the "LLC," generally, a popular type of business association that affords its equity owners not only the same limited liability protections as a corporation, but also operational and organizational flexibility similar to the general partnership. Generally, the company is treated as a separate entity from its equity owners. However, for tax purposes, the company is usually disregarded as a separate entity, such that its income, deductions, profits, losses, asset basis, and other items are typically allocated to its individual equity owners, in proportion to their ownership interests.