Limited Liability Company (LLC)
A Limited Liability Company (LLC) is owned by its “members” and their ownership interests are generally not subject to securities laws. LLC members make all the decision for the company unless they hire an outside manager. Depending on state law and the LLC’s operating agreement, the sale of an ownership interest in an LLC will likely require the unanimous consent of the remaining owners or at least a significant percentage of them. Like the S-Corporation, the LLC is taxed at the individual income tax level. The formalities of operating an LLC are not as involved as with a corporation. Particularly, LLCs generally do not require an annual meeting. LLC members invest in their company initially and for additional capital investment with cash and/or financing.