Privacy, Business and Law

An LLC, or limited liability company, is a form of entity that is usually treated as a partnership for tax purposes but where all owners, called members, have their liability for obligations of the LLC limited to the amount of their investment in it. Its existence commences with the filing of Articles of Organization with the Secretary of State, and the members are governed by an Operating Agreement, which is similar to a partnership agreement. For tax purposes, items of income, loss, deduction, expense, deprecation and gain are taxed to the members as reported on K-1 schedules. It is similar to a corporation which has elected to be taxed under Subchapter S of the Internal Revenue Code.