Limited Liability Company

The Limited Liability Company 

The Limited Liability Company (LLC)" is an exciting new business structure that has the pass-through tax benefit of a partnership and the "limited liability" protection of a corporation. We believe that the LLC will revolutionize relationships (see Relationship LLC) and the workplace.

Limited Liability Companies are not taxed when classified as a partnership, rather the members pay tax, at the personal income rate, on the money which they receive from the limited liability company. An LLC can be viewed as a partnership which has the advantage of a corporation in that the members/partners are not liable for the debts of the LLC, nor are they liable to each other.

LLCs are recognized by all fifty states, the federal government and internationally.

"The origin of this relatively new institution is generally attributed to the German Law of 1892, authorizing the Gesellschaft mit beschrnkter Haftung...Once established in Germany, the concept of the LLC had a very active and fast growth... Within a short period of time after enactment in Germany, the following countries joined the limited liability bandwagon: Portugal (1917); Brazil (1919); Chile (1923); France (1925); Turkey (1926); Cuba (1929); Argentina (1932); Uruguay (1933); Mexico (1934); Belgium (1935); Switzerland (1936); Italy (1936); Peru (1936); Columbia (1937); Costa Rica (1942); Guatemala (1942); and Honduras (1950). 13 Univ Pitt L Rev 193 (1952)."

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