What Is A Limited Liability Company?
A limited liability company or “LLC” is a company structure in which the shareholders’ liability towards the loss or deficit is limited by the amount paid for the shares. Therefore, if the company collapses, the shareholders do not have to use their personal property to cover the loss. The risk or liability is therefore limited.
The company has a life of its own. This means that it can sue or be sued in its own name. There is a ‘veil’ drawn between the company and its owners that can be lifted in a number of circumstances where the LLC owners and corporate shareholders act illegally or haphazardly.