What does limited liability mean to corporations?
In 1977, Wyoming became the first state in America to allow businesses to organize as limited liability corporations or companies. Since then, all states have followed suit and, as a result, business owners have been able to benefit in a number of ways.ConsiderationsOwners of LLCs are referred to as “members,” a term which can also apply to other LLCs, corporations or foreign businesses that are part of the LLC.RestrictionsMost businesses can register as a LLC, but banks, insurance companies and nonprofit organizations are prohibited from doing so.LocationDelaware and Nevada are the most popular states to set up an LLC. Delaware does not have sales tax and only charges business income tax for transactions that take place in the state. Nevada does not have corporate or personal income tax requirements, and like Delaware, does not require that business owners be residents or citizens.BenefitsLLCs are similar to corporations in that the owners have minimal personal liability for bills and
