An ”LLC” stands for Limited Liability Company. An LLC is a legal entity often used by businesses and individuals for a variety of reasons. One reason a business may establish an LLC is so that the business owner’s personal assets are protected from liability within the LLC. To establish an LLC within the State of Utah, a certificate of organization must be filed with the State containing specific information about the company.
Once established, the LLC can protect the owner’s personal assets from the debts and other liabilities of the company. However, the owners assets may be at risk if they don’t properly administer the LLC by, among other things, following corporate formalities and keeping the company accounts separate from their personal assets. Furthermore, individuals are still liable personally for their own actions. Thus a physician can still be liable for malpractice even if he has his own business as an LLC.
LLCs can also be established as holding companies to hold real estate. A slip and fall on the real estate owned by the LLC would give liability to the LLC assets only and not the owners of the company, so long as the LLC is run properly.