Limited Liability Company (llc)
Definition of "Limited liability company (llc)"
Company in which shareholders limit their liability exposure to their percentage of ownership or equity interest in the company. Shareholders' personal assets are protected in the event of business-related lawsuits. The tax situation for this type of company is much like that of the partnership in that it acts as a pass-through tax entity. A tax return for a partnership is filed with the IRS for information purposes only. All income and expenses are attributed to the stockholders of the LLC. According to the LLC agreement, the stockholders can allocate income and its resultant tax liability the same way as partners in a partnership. The LLC has advantages over the sub-chapter "S" corporation to include the following: LLC has no restriction on number of persons who may be stockholders; "S" corporations are limited to 35 stockholders; LLC may have multiple classes of stock; an "S" corporation can have only one issue of stock; and LLC may own subsidiaries; an "S" corporation cannot own subsidiaries.
Popular Insurance Terms
Publication stipulating underwriting rules applicable for a given line of insurance, classifications of exposures within that line of insurance, and premium rates per classification. For ...
Insurance policy underwritten and issued by a syndicate listing each risk insured by each syndicate member. ...
Measure showing how much life insurance an agent has lost through replacement. It is expressed as a percentage of number of policies, face amount, or premium volume. ...
Person insured under a blue CROSS hospitalization or blue shield medical health insurance plan. ...
Coverage on jewelry and precious stones on an all risks basis at any location subject to exclusions of wear and tear, war, and nuclear disaster. Each item must be specifically listed in the ...
Federal statute relating to drug abuse policies that requires all employers with federal contracts at least equal to $25,000 to certify, as a condition of receiving a federal contract, that ...
Hospital charges in addition to room and board. Miscellaneous expenses are covered under a basic hospital plan, with the limits of coverage expressed either as a multiple of the daily ...
Signed receipt by policyowner acknowledging that policyowner is in possession of the policy. ...
Type of disability income insurance that provides income payments to the wage earner when income is interrupted or terminated because of illness, sickness, or accident and can continue to ...
Have a question or comment?
We're here to help.