What Is a Limited Liability Company Anyway?

A limited liability company (not ‘limited liability corporation‘) is a specific type of legal entity. It is one of the choices for doing business, in addition to corporations, partnerships, trusts, etc. Many business people seem to think it is only a kind of business registration or license, but it’s much more than that!

To illustrate, here is another question (for readers of our BIZ QUIZ post – for extra credit):
If you and your pal(s) just file your LLC online and don’t do anything further, how do you get out of the LLC or kick out an undesirable member? (Answer: You can’t! You are basically stuck, unless everyone in the LLC agrees to that action. That’s why you need a good operating agreement to spell these things out.)

To get a little more into the weeds on LLCs, see ‘Business Entities’ (LLC).