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LLC- Limited Liability Corporation a best incorporated business

Sole Proprietorship vs. LLC vs. Corporation

LLC stands for Limited Liability Corporation, which is a particular type of incorporated business. There is more than one way to register a business, and LLC is a particularly attractive way, especially for people who have small businesses. An LLC has the same legal protection as other types of corporations but can provide better tax benefits.

Meaning of LLC

The letters “LLC” indicate that a business is its own legal entity. For that reason, the letters LLC are required to be in the business name as part of your name on checks, legal documents, and most of your stationery and billing. The letters “LLC” indicate that the company must meet specific legal standards as established by the Office of the Secretary of State. So now you come to know what is an LLC.


LLCs tend to be small businesses. In many states, a person may be the sole owner of an LLC, making this form of incorporation attractive to small business owners. State law requires LLCs to file annual reports with the Secretary of State’s office in the state in which the LLC is registered. These types of companies must comply with all state regulations to operate.


Business owners enrolled in as LLC enjoy the same legal protection as owners of any other type of corporation. The owners of this type of company cannot be responsible for the actions taken by the company. Additionally, the earnings of an LLC are only deducted once (individually) rather than twice (separately and corporately) as a Type C corporation. Most states will allow non-US citizens to own an LLC.


LLC owners must follow specific requirements to give up their part of the business. These requirements are more restrictive for those who have other types of companies. For example, before a member can sell their share in an LLC, they must obtain the written consent of all other members of the business to do so. There could also be limitations for whoever wants to buy the part of society that a person sells.

LLC Administrative Flexibility

The owners of most small LLCs are also involved in running their business. This agreement is called “member administration.”