Define: Limited Liability Company

UK Accounting Glossary

Definition: Limited Liability Company


Quick Summary of Limited Liability Company


Company where the liability of the owners is limited to the amount of capital they have agreed to contribute.



Advertisement



Full Definition of Limited Liability Company


A limited liability company (LLC) is a corporate arrangement that offers the shareholders of the company, limited liability with respect to a company’s general operations. That means that a limited liability company structure provides the owners of the company with protection against personal liability. In addition, a limited liability company may exempt the owners from certain pass-through taxes that may be otherwise applicable. As such, a limited liability company may encompass qualities of both the partnership and a corporation. Commonly, a limited liability company formations are relatively small businesses with a small number of shareholders. Although pertinent laws may vary from state to state, a typical limited liability company is not required to have a board of directors, and the transfer of shares is usually restricted. A limited liability company can be registered at the Office of Secretary of State.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/limited-liability-company/
Modern Language Association (MLA):
Limited Liability Company. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 29, 2020 https://payrollheaven.com/define/limited-liability-company/.
Chicago Manual of Style (CMS):
Limited Liability Company. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/limited-liability-company/ (accessed: February 29, 2020).
American Psychological Association (APA):
Limited Liability Company. PayrollHeaven.com. Retrieved February 29, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/limited-liability-company/

Definition Sources


Definitions for Limited Liability Company are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.