Limited Liability Company (LLC)

Definition:

An entity that has features of a partnership and a corporation, but is not a corporation although the liability of its members/subscribers is (subject to certain exceptions) limited to the value of their respective investments (usually called units or interests).

The governance terms for an LLC are set out in an Operating Agreement. Most LLC statutes permit a wide range of governance practices and LLCs can be structured to operate like partnerships or corporations.

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