ShmoopTube
Where Monty Python meets your 10th grade teacher.
Search Thousands of Shmoop Videos
Wealth Videos 168 videos
What do you need to retire? Retirement - think: 401k, pension fund, IRA, roth IRA, etc. All of these savings socked away while you worked hard are...
What are T-Notes, T-Bonds, and TIPS? T-Notes are debt securities (like bonds) that are issued by the government and mature within one to 10 years....
What is AMBAC? AMBAC stands for American Municipal Bond Assurance Corporation. It provides insurance for municipalities that sell muni bonds, such...
Finance: What is an LLC? 4 Views
Share It!
Description:
What is an LLC? LLC stands for Limited Liability Company. It is a hybrid type of company that combines the corporate protections of separating corporate and personal assets and liabilities with tax advantages and other elements of partnerships and sole proprietorships. The LLC’s tax liabilities are paid at the shareholder’s personal level, so the LLC only files returns without payments. Unlike the corporation, the LLC cannot outlive its founders unless there are continuation agreements. Additionally, new shareholders can be added without corporate resolution in the LLC.
- Social Studies / Finance
- Finance / Financial Responsibility
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Accounting
- Terms and Concepts / Board of Directors
- Terms and Concepts / Bonds
- Terms and Concepts / Company Management
- Terms and Concepts / Credit
- Terms and Concepts / Incorporation
- Terms and Concepts / Insurance
- Terms and Concepts / Investing
- Terms and Concepts / Muni Bonds
- Terms and Concepts / Regulations
- Terms and Concepts / Retirement
- Terms and Concepts / Wealth
- College and Career / Personal Finance
Transcript
- 00:00
finance a la shmoop. what is an LLC? LLC no that's not a rapper, that's a limited
- 00:10
liability company or look as professionals in the business pronounce
- 00:15
it. well why do you want one? because limiting your liability is a [man explains]
- 00:19
good thing if you're the one potentially liable for that stooge who slips on a
- 00:24
banana peel in your lobby waiting area and then Sue's you and wins. if you start
Full Transcript
- 00:29
building your own company as an individual and not as an LLC and you get
- 00:34
sued for whatever, and you lose well you could lose everything you own.
- 00:38
that is the lawyers will come after your house your car your poodle your signed
- 00:43
Mila Kunis photograph collection, and legally well they'll be entitled to take
- 00:48
all of it. if you have existed under the legal structure of an LLC however, well [legal structures pictured]
- 00:53
the most you can be liable for is the assets of the business itself. yes
- 00:58
they'll take the company computer the remaining 17 months of lease on the
- 01:02
company building, and all your staplers and posted thingies but legally they
- 01:06
won't be able to go after your home your car your poodle or your autograph
- 01:10
collection. Mila is safe whew. so LLC's are a good thing they cost only a few
- 01:16
hundred bucks to set up these days, hi LegalZoom. so before you start up a lava
- 01:20
lamp company of your own think about setting up an LLC first. Mila and your [lava lamps in a row]
- 01:25
poodle gregory will thank you for it.
Related Videos
GED Social Studies 1.1 Civics and Government
What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...
What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...
How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...