# Limited liability company

> Limited liability company — A state-law entity whose owners (members) are shielded from its debts like shareholders. Federal tax has no LLC category: by default it is a partnership with two or more members and disregarded with one, and it is a C or S corporation only if it elects.

Source: https://lopifi.com/glossary/limited-liability-company
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is limited liability company?** In accounting, limited liability company means a state-law entity whose owners (members) are shielded from its debts like shareholders. Federal tax has no LLC category: by default it is a partnership with two or more members and disregarded with one, and it is a C or S corporation only if it elects.

## Also known as

- LLC

## Words this system refuses for it

- limited liability corporation
- an LLC tax return

- **Category:** Entity types
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** s-corporation, liability