Limited Liability Company
BoatWiki - Definitions
Definition
A limited liability company (LLC) is a business structure that protects its owners from personal responsibility for its debts or liabilities. These are state sanctioned legal entities where the details of formation and regulation may vary somewhat among jurisdictions. LLCs can be directed by one or more of the members or an appointed external manager who is a non-member.
Meaning
Limited liability companies combine the characteristics of a corporation with those of a partnership or sole proprietorship. In fact, the Internal Revenue Service may optionally treat sole member LLCs as proprietorships.
Context
Liabilities can proliferate when it comes to operating a boat. LLC ownership is, therefore, quite popular when it comes to boat ownership formation.
Conclusion
Choosing any method of ownership for a boat can have both legal and taxation implications. It is highly advisable to consult with a lawyer and tax professional before making such determination.
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Credits and References
3/1/2022 - Page initiated by Team BoatWiki.
8/24/2022 - Page revised.
