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Definition:
The term limited liability corporation is an incorrect use of the business legal type "limited liability company." The term "limited liability corporation" has come into use because of confusion about different business types.
A limited liability company is formed in most states with Articles of Organization (or aCertificate of Organization) and the owners are members, not shareholders. An LLC is not incorporated; it operates and is taxed as a sole proprietorship for a single-member LLC and as a partnership for a multiple member LLC.
