LLC

LLC definition - finance
A Limited Liability Company is a legal company that has a limited existence. It is neither a corporation nor a partnership. The LLC can be dissolved when a member dies, resigns, or files for bankruptcy protection, unless the remaining members unanimously vote to continue the business. The LLC has a termination date in the Articles of Organization, but the operating agreement can be written to avoid that end result. An LLC allows taxes that are owed on income to pass through directly to the owners, who have to report the income on their income tax forms.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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