LLC stands for Limited Liability Company, which is a type of business structure that provides its owners with limited personal liability for the company’s debts or obligations. This means that the owners’ personal assets, such as their homes or personal bank accounts, are generally protected in the event of the company’s bankruptcy or if it is sued.
LLCs are a popular choice for small businesses and freelancers because they offer some of the benefits of a corporation, such as limited liability protection, while also providing the flexibility and tax benefits of a partnership or sole proprietorship. Owners of an LLC are referred to as “members” rather than shareholders or partners, and the company is typically managed by its members or by designated managers.
It’s important to note that the specific rules and regulations for LLCs vary by jurisdiction, so it’s a good idea to consult with a lawyer or accountant to determine if an LLC is the best structure for your business.