LLC Full Form Definition + Bank Account Opening

For LLC full form is “Limited Liability Company” which refers to a popular corporate structure available in many jurisdictions around the world.

However, it can be difficult to decide where to register, especially if you also require a bank account for your LLC.

In this article, we’ll explore the various options for registering an LLC and discuss if an LLC is right for you.

This article is part of our free series on business banking, including how to find the best bank to open a business account in top jurisdictions around the world.

Feel free to use the table of contents to jump ahead to the sections most relevant to you.

Table of Contents

  1. LLC Full Form
  2. What Is a Limited Liability Company?
  3. Should I Register My Business as an LLC?
  4. Where Should I Register My LLC?
  5. Frequently Asked Questions
  6. Ready to Explore Your Options?

LLC Full Form

LLC full form is “Limited Liability Company” which refers to a company that has characteristics of both a corporation and a partnership. In short, an LLC offers its owners (members) limited liability while also acting as a pass-through entity for tax purposes, which can offer considerable flexibility and benefits. 

What Is a Limited Liability Company?

In addition to the standard Limited Liability Company, there are several other variations that you may want to consider. Here is a look at some of the most common LLC forms considered by prospective business owners.

Limited Liability Company (LLC)

As mentioned, a Limited Liability Company is a pass-through entity that offers liability protection along with flexibility to the owners. The owners are members of the LLC and their ownership in the company is referred to as interest. Rights and potential earnings are typically divided based on each member’s interest, as it would be in a corporation based on shareholding.

Professional Limited Liability Company (PLLC)

For example, there is also a Professional Limited Liability Company, which is available in certain jurisdictions to licensed professionals such as doctors, lawyers, dentists, architects, and individuals in similar professions.

Series Limited Liability Company (SLLC)

Additionally, a Series LLC refers to a company that has been registered with the ability to segregate membership interests. This essentially allows for an LLC to act as multiple LLCs, clearly separating liability between the various “series”. This may be helpful in instances when an LLC owns multiple assets but wants to shield each asset from the liability of the others. For example, an LLC that owns multiple properties.

Anonymous Limited Liability Company (LLC)

Another commonly referred to LLC is an anonymous LLC, which simply refers to an LLC that is registered in a jurisdiction that does not disclose member information. Instead, the only publicly available information is tied to the registered agent of the LLC through the state registry.

Should I Register My Business as an LLC?

Whether you should register your business as an LLC or another corporate entity ultimately depends on your goals for the business, tax situation, and future plans.

To help decide if an LLC is right for you, here is a look at the specific benefits that an LLC can offer.

Benefits of an LLC

  • Limited liability for the owners (members)
  • Flexible structures
  • Enhanced privacy
  • Anonymous ownership
  • Pass through for tax purposes

In most cases, individuals trying to determine which structure is best for their needs should consult with a professional advisor. That way, you will ensure that the entity type you choose matches your unique goals, now and down the road.

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Where Should I Register My LLC?

When it comes to forming an LLC, most people think of registration in the United States. And, there are a number of US states that offer very attractive LLC options, including Wyoming and Delaware.

However, the United States is not the only jurisdiction where individuals can register an LLC. And, depending on your specific objectives, it’s possible that other jurisdictions may offer more benefits. This is particularly true when it comes to asset protection, as several jurisdictions have built upon US LLC laws in order to offer owners greater security over their assets.

That said, if you are a resident of the United States and you are looking to register an LLC for an operating business, you should consider registering an LLC locally. Otherwise, you will have a “foreign LLC” and you will still be required to register your LLC locally, resulting in double the reporting and administrative work and costs each year. On the other hand, if you are looking for asset protection purposes, you may find that there are better options available elsewhere.

Also, if you do not have an operating business in the US, you can consider the most popular US LLC jurisdictions, which are Delaware and Wyoming. Both offer reasonably priced options for foreign non-residents and can access US banks 100% remotely. Of course, if this is of interest to you, you can get started by selecting Banking in the USA from the menu above.

However, as mentioned above, the United States is not the only jurisdiction where an LLC can be formed. Here is a list of other countries you may want to consider:

  • Anguilla
  • Belize
  • Bermuda
  • Cayman Islands
  • Cook Islands
  • Cyprus
  • Guernsey
  • Malta
  • Marshall Islands
  • Nevis

Frequently Asked Questions

Below are three of the most common questions that we receive from people looking into filing an LLC full form. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.

What Are Limited Liability Companies (LLCs) Used For?

Limited Liability Companies (LLCs) are commonly used for operating businesses, investment purposes, asset protection, and more. In other words, an LLC offers a great deal of flexibility in how it is used. Similarly, it offers different benefits to the owners (members) in terms of protection.

What’s the Difference Between an LLC and a Corporation?

The main difference between an LLC and a Corporation is that an LLC is a pass-through entity and is not taxed at the corporate level, while a Corporation is taxed separately from its owners. That said, both an LLC and a Corporation offer liability protection for the members or shareholders, whichever the case may be.

Do I Need an LLC For My Business?

No, you do not need an LLC for your business. Instead, you can choose from one of the other available corporate structures. Depending on where your company is operating, this can include many options. For example, a Corporation, Sociedad Anónima, Partnership, or any other entity that offers legal protection for the shareholders.

Ready to Explore Your Options?

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