LLC means Limited Liability Company. It is a special business structure that has been legally allowed by business legislations of various countries. LLCs are very popular simply because just like a corporation the owners of LLC will have minute personal liability or obligation for the actions and debts of LLC.
Owners of a Limited Liability Company are known as members. There is no restriction about the type and no. of members. In most of the countries those Limited Liability Companies are also allowed that have only one owner or member. In different countries, domestic business legislation provides a defined provision for a firm to be a Limited Liability Company. Usually, business like insurance companies and banks cannot get a designation of Limited Liability Company in majority of countries.
It is extremely important to understand that the designation of Limited Liability will not spare the owners of Limited Liability Company from all the personal liabilities. Concerned courts of justice can cancel the designation of Limited Liability Company at any point of time if the organization is found to be involved in some fraudulent activity.
LLCs in India
In India the Limited Liability Companies are known as LLPs i.e. Limited Liability Partnerships. A special act under the name of Limited Liability Partnership Act was sanctioned in Indian parliament in year 2008 for looking out the matters of small organizations. Limited Liability Companies first need to register themselves through Companies Act, 1956 and then Limited Liability Partnership Act, 2008 takes up all matter of designation a firm as Limited Liability Partnership firm.