LIMITED LIABILITY COMPANY

A limited liability company, or LLC, is a hybrid form of business organization that combines the most desirable features of a corporation and a partnership.

Like a corporation, a properly structured LLC protects its owners (called “members”) from personal liability for the debts and obligations of the organization; moreover, an outside creditor has limited options when trying to seize a member’s LLC interest. When all applicable tax law requirements are met, however, an LLC is taxed as a partnership for federal income tax purposes. This combination of state law limited liability and federal income tax treatment as a partnership can be highly advantageous to the LLC’s owners. 

The law firm of Cohen & Burnett regularly forms such business entities for its clients.