business organizations

Limited Liability

Definition

An important characteristic of corporations and other business organizations like the Limited Liability Company (LLC), is that investor liability is limited to the extent of their investment. That is, if the company loses a lawsuit or has...

Limited liability company (LLC)

Definition

A type of business organization that offers the limited liability of a corporation and the tax benefits of a partnership. The owners of an LLC are referred to as "members", whose rights and responsibilities in managing the LLC are governed by...

Limited liability partnership (LLP)

Definition

A type of partnership which extends limited personal liability to all partners, including general partners. Operates in similar fashion to a Limited liability company (LLC).

See alsoPartnershipLimited partnership

Limited partnership

Definition

A type of partnership with at least one general partner and at least one limited partner. A general partner is responsible for managing the partnership but maintains personal liability for the partnership's debts. A limited partner generally...

Liquidating partner

Definition

The member in a liquidating partnership responsible for selling and distributing assets and settling debts on behalf of the partnership.

See alsoPartnershipLiquidation

Liquidation

1. The act of calculating liabilities and distributing assets, especially of a business that is being wound up.

2. The act of determining the cash value of some debt or damage. The parties involved essentially reduce their legal conflict or...

LLC

Definition

See Limited liability company (LLC).

LLP

Definition

See Limited liability partnership (LLP)

Low-profit limited liability company (L3C)

Definition

A type of limited liability partnership (LLP), which operates to “significantly further the accomplishment of one or more charitable or educational purposes". Unlike a non-profit charitable organization, L3Cs may make a small profit, as long...

Margin

Generally, margin, or profit margin, is the difference between a product or service’s selling price and the cost of production. See Investopedia. For example, if you pay 50 cents for a pencil and sell it for a dollar, your margin is 50%.

A...

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