The terms LC and LLC are used to describe types of businesses in the United States. While some states use the designation LC and others use LLC, the terms are synonymous and both describe the same type of entity.
The abbreviation LC stands for "limited company." LLC stands for "limited liability company." Both refer to the same type of business: a partnership or sole proprietorship in which the risk to owners -- called "members" -- is limited. This means that the personal property of individual owners cannot be seized to pay the debts of the business, unless the owner pledged his own personal property as collateral for a loan or personally co-signed on a loan for the business.
The primary advantage of an LC or LLC is that this type of partnership limits the risk to investors and members. However, an LLC has some disadvantages when compared to a corporation. For example, an LLC cannot have publicly traded stock, meaning it relies on private investment. Additionally, because the laws governing LCs and LLCs vary significantly among states, chartering a large regional business as an LLC may not be the best idea.
