1.14 : شركة ذات مسؤولية محدودة

A Limited Liability Company, or LLC, is a type of business structure that combines the flexibility of a partnership with the limited liability protection of a corporation.

It protects its owners from personal liability for the company's debts or legal actions.

LLCs serve a broader range of businesses than LLPs, which are mainly for professional partnerships.

Unlike corporations, LLCs require less paperwork and are subject to fewer regulations and formalities, making them easier to manage and operate.

Let's consider five people starting a pet grooming business called Furry Friends LLC. All five entrepreneurs are considered members who hold ownership interests in an LLC.

The LLC does not pay taxes. Instead, the members pay individual taxes for their share of profits and are only taxed once for federal income tax purposes.

If the business fails, the personal assets of members, such as their houses or cars, will not be at risk.

LLCs are a popular choice among small business owners because of their safety and flexibility.

However, LLCs find it harder to get external investment, which might make it more challenging for them to grow and expand.