A Limited Liability Company (LLC) can be defined as a business entity that incorporates some aspects of a corporation together with those of a partnership/sole proprietorship. The LLC is relatively a new concept in the United States which was geared towards helping small businesses have accessibility to the benefits that are often associated with corporations while maintaining their small model of operation. This form of company is therefore flexible as it borrows from the two models and can be referred to as a hybrid business (Daily, p 42).
This type of business is also known as ‘a company with a limited liability’. This paper shall aspire to define a limited liability company and give its role in accounting. Limited Liability Company: Even though LLC is a business entity,….