business






 

Question by  MissAmbitions (56)

What does the "liability" part of an LLC mean?

 
+6

Answer by  Duncan (1124)

Liability means the ability of creditors or other plaintiffs to recover money from you. An LLC, or limited liability company, limits the amount of liability that the owners of a business have towards their creditors.

 
+6

Answer by  Kurt (4579)

LLC stands for Limited Liability Corporation. The concept is to limit the liability the owners have for any lawsuit that may be brought against the owners or even the debts of the corporation.

 
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