Limited liability company

A limited liability company is a business entity whose owners generally are not personally liable for its debts and obligations. Its legal structure and tax treatment vary by jurisdiction.

Limited liability: A legal rule that generally shields an owner’s personal assets from an entity’s debts and obligations. This protection is the central feature distinguishing the LLC form.
Corporation: A legal entity distinct from its owners, typically organized under a statutory corporate structure. Unlike a corporation’s standard formal structure, an LLC often permits more flexible internal governance.
Business registration: The process of recording a business with a government authority to establish or authorize its legal status. An LLC usually comes into legal existence through a formation filing with a state or comparable authority.
Small business: An independently owned and operated business that is limited in size, revenue, or workforce. LLCs are commonly used to organize privately owned small businesses.
Wyoming Limited Liability Company Act: The 1977 Wyoming statute that established the first U.S. limited liability company framework. Wyoming enacted the United States’ first LLC statute.
Operating agreement: A contract that sets rules for a limited liability company’s ownership, management, and internal affairs. It can specify how members govern the company and share its economic results.
Sole proprietorship: A business owned and operated by one person without a separate legal entity. An LLC can separate owners from business liabilities in ways a sole proprietorship generally does not.
Piercing the corporate veil: A legal doctrine that can make owners personally liable when a court disregards an entity’s separate status. Commingling funds or abusing the entity may undermine the liability shield.
Real estate investment: The acquisition, ownership, or financing of property to generate income or capital gains. Investors may use separate LLCs to hold properties and organize ownership.
William J. Raggio: A Nevada legislator associated with promoting limited liability company legislation in the United States. His efforts helped advance LLC legislation beyond Wyoming.

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