The LLC is now the most popular form of closely held business in the US. Limited Liability Companies have the "pass-through" tax advantages of a sole proprietorship or partnership and the liability protections similar to a corporation. He is more information explaining LLC's in detail: LLC FAQs LLC's and Foreign Jurisdictions LLC's Need a written Operating Agreement Should your Spouse be a Member of your LLC?
Historical Perspective on:
By W. S. Gilbert
(from The Bab Ballads, circa 1868)
Some seven men form an Association (if possible, all Peers and Baronets),
They start off with a public declaration
To what extent they mean to pay their debts.
That's called their Capital: if they are wary
They will not quote it at a sum immense.
The figure's immaterial -- it may vary
From eighteen million down to eighteen pence.
I should put it rather low;
The good sense of doing so
Will be evident at once to any debtor.
When it's left to you to say
What amount you mean to pay,
Why, the lower you can put it at, the better.
They then proceed to trade with all who'll trust `em,
Quite irrespective of their capital
(It's shady, but it's sanctified by custom);
Bank, Railway, Loan, or Panama Canal.
You can't embark on trading too tremendous--
It's strictly fair, and based on common sense--
If you succeed, your profits are stupendous--
And if you fail, pop goes your eighteen pence.
Make the money-spinner spin!
For you only stand to win,
And you'll never with dishonesty be twitted.
For nobody can know,
To a million or so,
To what extent your capital's committed!
If you come to grief, and creditors are craving
(For nothing that is planned by mortal head
Is certain in this Vale of Sorrow -- saving
That one's Liability is Limited),--
Do you suppose that signifies perdition?
If so you're but a monetary dunce--
You merely file a Winding-Up Petition,
And start another Company at once!
Though a Rothschild you may be
In your own capacity,
As a Company you've come to utter sorrow--
But the Liquidators say, "Never mind -- you needn't pay,"
So you start another Company tomorrow!