Limited Liability Company (LLC)

Published:

Definition - What does Limited Liability Company (LLC) mean?

A limited liability company (LLC) is a company whose members are not legally responsible for its debts and other liabilities. Although companies opt for LLC status because it reduces risk, many of them still purchase business insurance to cover the remaining risks.

Insuranceopedia explains Limited Liability Company (LLC)

Limited liability companies are not subjected to the same taxes as corporations. Instead, the income LLC owners draw from the company is taxed as personal income.

Even though LLC's have limited liability and owners cannot be held individually responsible for company debt, they can still be sued. Therefore, it is wise for LLC owners to have some type of commercial insurance to avoid having to file for bankruptcy as a result of an expensive lawsuit.


How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this:

Connect with us

Email Newsletter

Join thousands receiving the latest content and insights on the insurance industry.