![]() When an LLC is formed, it is said to be "organized", not "incorporated" or "chartered", and its founding document is likewise known as its " articles of organization", instead of its " articles of incorporation" or its "corporate charter". Īlthough LLCs and corporations both possess some analogous features, the basic terminology commonly associated with each type of legal entity, at least within the United States, is sometimes different. As a business entity, an LLC is often more flexible than a corporation and may be well-suited for companies with a single owner. The primary characteristic an LLC shares with a corporation is limited liability, and the primary characteristic it shares with a partnership is the availability of pass-through income taxation. ![]() An LLC is a type of unincorporated association, distinct from a corporation. Īn LLC is a hybrid legal entity having certain characteristics of both a corporation and a partnership or sole proprietorship (depending on how many owners there are). states (for example, Texas), businesses that provide professional services requiring a state professional license, such as legal or medical services, may not be allowed to form an LLC but may be required to form a similar entity called a professional limited liability company ( PLLC). LLCs are well known for the flexibility that they provide to business owners depending on the situation, an LLC may elect to use corporate tax rules instead of being treated as a partnership, and, under certain circumstances, LLCs may be organized as not-for-profit. An LLC is not a corporation under state law it is a legal form of a company that provides limited liability to its owners in many jurisdictions. It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. Société à responsabilité limitée (SARL)Ī limited liability company ( LLC for short) is the United States-specific form of a private limited company.Gesellschaft mit beschränkter Haftung (GmbH).Limited liability limited partnership (LLLP).Scottish charitable incorporated organisation (SCIO).Charitable incorporated organisation (England and Wales) (CIO). ![]() The important thing is to be consistent and stick with the name you register, particularly when it comes to legal documents. Use a comma or don’t, either way is fine. In short, the answer to the title question is that it’s up to you and your fellow LLC members. In the case of corporations using “Inc.”, for instance, the period is not legally required but is almost always used. What About Periods?įor an LLC, periods are not usually used at the end of LLC, but “L.L.C.” is sometimes used. You need to always use your LLC name exactly as written on your business registration documents. If your chosen business name has a comma, you need to always use the comma, particularly on legal documents. What’s important is that you’re consistent. Associated Press (AP) style suggests not to use the comma, but that does not need to be a consideration. Grammatically, opinions on the comma vary. For example, if your business is Smith’s Shoes LLC, calling it “Smith’s Shoes, LLC” separates the LLC from what customers will actually call your business. Many businesses use the comma because it offers separation between the business name and the LLC designation. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals. Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. Your business name is important, however, so choose wisely. The same applies to corporations with “Inc.” in their name when it comes to the comma. Check with your state for specific naming requirements. Naming requirements vary by state, but no state requires a comma in your LLC name. It’s up to the LLC owners, also known as members, whether to use a comma before LLC or not. States do not dictate the punctuation used in your LLC name. But you might be wondering about the appropriate punctuation - for instance, do you need a comma in your LLC name? State Requirements Most states require that your LLC name include either “limited liability company”, “LLC”, or “L.L.C”. If you’re starting a limited liability company (LLC), you’ve probably checked your state’s LLC naming regulations before settling on a name for your new business.
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