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LLC: limited liability corporation
A type of corporation that can be used to easily distribute profit and revenue that is not bind to the portion of ownership. For example: Person A owns 30% of shares Person B owns 60% of shares And the profit of the year is $10,000 You don't need to spilt the profit into 3,000 for A and 6,000 for B like other corporation type. You can distributed any way you like as long as it is documented in the board meeting minutes. Also LLC allow share owner to facilitate the officer of the company, etc... This is just an sample explanation, there are also tax implication as well. Just short and sweet :-) |