Limited Liability Company (LLC) Overview Essay

Exclusively available on Available only on IvyPanda® Made by Human No AI

The venture business in the United States as such began to take shape in the middle of the 20th century. Its goal was to close the gap that existed between science and industry. An important role in the development of venture business in the United States was played by government support, which was expressed in the creation of a special infrastructure, preferential lending, and measures aimed at the development of venture activities. At the same time, the legislator recognized the American LLC as a form of a legal entity, which is the most suitable for the functioning of a project company. This fact contributed to a significant increase in the number of new companies in the USA which adopted the startup model.

Today LLCs are quite widespread and gaining increasing popularity in various sectors. In particular, they are used as static legal entities – asset holders, as opposed to operating companies directly involved in the business process (Mancuso, 2019). LLCs are also actively used by persons who carry out licensed activities, including doctors, lawyers, and auditors (Mancuso, 2019). They create a kind of professional limited liability company (PLLC), choosing the LLC form because of its relative freedom of management. Importantly, the presence of limited liability is determined by the advantage in resolving issues of liability for professional errors. However, the creation of a form such as PLLC is allowed not in all states; for example, in California, the establishment of PLLC is prohibited (Mancuso, 2019). Additionally, the combination of the advantages of limited liability of company participants with the relative freedom of organizing internal management constitutes an advantage for startups and new companies.

Essentially, LLC is a legal entity that combines partnership, corporation, and sole proprietorship properties. Figuratively speaking, a limited liability company is a full-fledged legal entity that can be created by one or more persons. Thanks to these properties, LLCs has become the most popular form of activity for startups. In addition, LLC members have the right to choose according to what mechanisms the organization will be taxed and determine the requirements for a corporation, which is quite rare in practice. Thus, being an effective form of entity both on economic and legal planes, LLC status become a reason for the growth of the number of startups and new companies in the USA since gave them enough space for launching their activity.

Reference

Mancuso, A. (2019). Form your own limited liability company: Create an LLC in any state. (11th ed.). NOLO.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2022, September 19). Limited Liability Company (LLC) Overview. https://ivypanda.com/essays/limited-liability-company-llc-overview/

Work Cited

"Limited Liability Company (LLC) Overview." IvyPanda, 19 Sept. 2022, ivypanda.com/essays/limited-liability-company-llc-overview/.

References

IvyPanda. (2022) 'Limited Liability Company (LLC) Overview'. 19 September.

References

IvyPanda. 2022. "Limited Liability Company (LLC) Overview." September 19, 2022. https://ivypanda.com/essays/limited-liability-company-llc-overview/.

1. IvyPanda. "Limited Liability Company (LLC) Overview." September 19, 2022. https://ivypanda.com/essays/limited-liability-company-llc-overview/.


Bibliography


IvyPanda. "Limited Liability Company (LLC) Overview." September 19, 2022. https://ivypanda.com/essays/limited-liability-company-llc-overview/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1