Limited Liability Company

Essay by mamalayneUniversity, Bachelor'sA, January 2009

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AbstractIn this paper we will discuss the advantages of setting up a Limited Liability Company (LLC). First we will discuss the definition of a LLC, how it came about, and give a general history of its development. The paper will also cover the applications of agency law and which laws govern the rules and regulations of an LLC. We will then discuss the advantages and disadvantages of operating an LLC, and compare and distinguish among the different types of business entities. Lastly, we will discuss the impact of e-business and the rights and protections that are available to a company doing e-business.

Table of ContentsLimited Liability Company Cover1Abstract2Limited Liability Company5History5Formation5Structure6Advantages Of A Limited Liability Company7Disadvantages Of A Limited Liability Company8Agency Laws - ULLCA & RULPA9Limited Liability vs Other Forms Of Business10Table 1. - LLC vs Others11Why Should Llc Be Used Instead Of An S Corporation Or A Partnership?11Llc Vs Other Corporations Tax Issues12E- Business13UTEA13ECPA14Internet Domain15UCITA15Intellectual Properties16Patents16Copyrights18Trademarks19References20Limited Liability CompanyThe definition of a Limited Liability Company (LLC) is a business structure that is a hybrid of a partnership and a corporation.

Its owners are shielded from personal liability and all profits and losses pass directly to the owners without taxation of the entity itself. It is important to note that an LLC provides its owners with corporate-like protection against personal liability, it is however, usually treated as a noncorporate business organization for tax purposes.

HistoryThe limited liability company (LLC) is a relatively new business form in the United States. The first state to enact LLC legislation was Wyoming in 1977, at that time the state wished to attract capital and create a statute specifically for a Texas oil company. Over the years many states followed with their own statutes. In 1988 the Internal Revenue Service (IRS) issued a ruling that an LLC...