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Glossary of Legal, Business and Financial Terms
This glossary contains definitions of common legal terms, as well as words and phrases related to business and finance. Some terms may have different meanings based on the
area of law or the context in which they are used.
Limited liability company (LLC)
A company structure in which shareholders limit their liability exposure to their percentage of ownership or equity interest in the company. Shareholders' personal assets are protected in the event of business-related lawsuits. All income and expenses are attributed to the stockholders of the LLC. According to the LLC agreement, the stockholders can allocate income and its resultant tax liability the same way as partners in a partnership.
