Terms to Know
Structure whereby the individual owner and the company are indistinguishable with regard to tax and liability.
Limited Liability Company is a structure whereby partners are not responsible on a personal level for the organization's liabilities.
Limited Liability Partnership establishes the framework of two or more partners form a company, one of whom is only liable for the amount invested in the organization and not accountable for the other partner's impropriety.
A company that exists as a separate unit from owners and shareholders, thereby protecting each individual from liability that exceeds the original investment.
A company whose shares are not purchased or traded publicly to investors and consumers.
An organization that reinvests profit into the goals of the company instead of distributing to owners and shareholders.