What does LLC stand for?
Limited liability company
A limited liability company (LLC) is the US-specific form of a private limited company. It is a business structure that can combine the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. An LLC is not a corporation in and of itself; it is a legal form of a company that provides limited liability to its owners in many jurisdictions. LLCs are well known for the flexibility that they provide to business owners; depending on the situation, an LLC may elect to use corporate tax rules instead of being treated as a partnership, and, under certain circumstances, LLCs may be organized as not-for-profit. In certain U.S. states (for example, Texas), businesses that provide professional services requiring a state professional license, such as legal or medical services, may not be allowed to form an LLC but may be required to form a similar entity called a professional limited liability company (PLLC).
Development of non-profit housing in the United States
Forms of legal ownership structures that non-profits create include general partnerships, limited partnerships and limited liability companies (LLC). In a general partnership, two or more entities come together to form a new business entity where each partner is jointly and severally liable for all legal and financial obligations. Also,each member has a right to participate in all partnership decisions unless specified otherwise in the partnership agreement. Partnerships are not tax entities, so all tax consequences are passed directly to individual partners; partners agree to shares of tax consequences, as well as cash flow and appreciation of the project. Limited partnerships are similar to a general partnership except that one or more partners act as a general partner, and the rest of the partners are limited partners. Limited partners are treated differently than general partners in that they are only liable for the capital invested and cannot participate in routine operations or decisions of the partnership without losing their limited liability protection. The partnership agreement defines the responsibility of each partner and how the share profits and tax consequences. An LLC combines the advantages of a corporation for personal liability purposes (liability is limited to the amount of capital invested) and those of a partnership for tax purposes (the entity is not taxed).