Limited Liability Corporation Establishment

Limited liability corporation establishment simply refers to the creation of a limited liability corporation.  First of all, it is important to define what a limited liability corporation is.  In common parlance, a limited liability corporation is neither a corporation nor a partnership but it has attributes pertaining to a partnership and a corporation.  It is often referred to as an “LLC” or a limited liability company.

For once, a limited liability corporation has the attribute of a corporation in that it enjoys the same liability protection benefits accorded to members or stockholders of a corporation.  This means that upon the limited liability corporation establishment, the persons composing it will only be liable to investors and creditors to the extent of their participation or contribution to the corporation.  There will be lesser liability on the part of the members since their respective liability is controlled depending on the amount of their participation to the corporation.  In fact, all persons that deals or conducts any transaction with the corporation must and should be aware of this limited liability of all its members.  Hence, they cannot enforce liability to a member more than what his or her stated participation is, upon the limited liability corporation establishment.   

On the other hand, a limited liability corporation may be liked to a partnership in the sense that it has some of the attributes of a partnership. But again, it is not what we know as the usual partnership.  One example of this is the fact that the members of the limited liability corporation are being taxed by our taxing authority in the same manner that partners in a partnership are being taxed. The members are treated as partners for tax purposes.  

Now, if you want to ask for assistance on whether or not to go for limited liability corporation establishment, you can always have consultations with the business lawyers we have in this website. We can definitely give you expert advice on your confusion. All you have to do is to contact one of our business lawyers through the toll-free-numbers that you can find in this website and we will immediately respond to all your queries regarding limited liability corporation establishment.