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A limited liability company (LLC) is a legal business entity that provides some liability protection (like a corporation) and other features similar to a partnership. The owners of an LLC are called members, and LLCs can have several different types of owners, including some other business types.
"Piercing the corporate veil" refers to a situation in which courts put aside limited liability and hold a corporation's shareholders or directors personally liable for the corporation's actions or debts. Veil piercing is most common in close corporations.
LLC owners are referred to as members, and ownership can include only one member or many members, with members comprising individual people, other business entities or both.
LLC owners are generally called members. Many states don't restrict ownership, meaning anyone can be a member including individuals, corporations, foreigners, foreign entities, and even other LLCs.
Those LLC members who operate the business owe the fiduciary duties of loyalty and reasonable care to the non-managing LLC owners. Depending upon your state, LLC members may be able to revise, broaden, or eliminate these fiduciary duties by contract or under the conditions of their LLC operating agreement.
The main reason people form LLCs is to avoid personal liability for the debts of a business they own or are involved in. By forming an LLC, only the LLC is liable for the debts and liabilities incurred by the businessnot the owners or managers.
Generally, shareholders are not personally liable for the debts of the corporation. Creditors can only collect on their debts by going after the assets of the corporation. Shareholders will usually only be on the hook if they cosigned or personally guaranteed the corporation's debts.
A member of the LLC should have an ethical responsibility to meet the obligations of the firm. They should have duty of care.
Owners of an LLC are called members. Most states do not restrict ownership, so members may include individuals, corporations, other LLCs and foreign entities.