{"ok":true,"canonical_url":"https://dealroom.so/glossary/limited-liability-company","api_url":"https://dealroom.so/api/public/glossary/limited-liability-company","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"limited-liability-company","term":"Limited Liability Company","aka":"LLC","group":"People and paperwork","definition":"A business structure that protects owners from personal liability for business debts. As a buyer, you'll likely form an LLC to own the acquired business, shielding your personal assets.","what_it_means":"Most small business acquisitions, especially with an SBA 7(a) loan, involve forming a new LLC as the acquiring entity. This structure separates your personal finances from the business's liabilities, which is crucial for risk management. Ensure your legal counsel helps you set up the LLC correctly.","url":"https://dealroom.so/glossary/limited-liability-company","official_sources":[],"related":[{"slug":"corporation","term":"Corporation","url":"https://dealroom.so/glossary/corporation"},{"slug":"partnership","term":"Partnership","url":"https://dealroom.so/glossary/partnership"},{"slug":"loan-documents","term":"Loan Documents","url":"https://dealroom.so/glossary/loan-documents"}],"related_questions":[{"question":"Are business life insurance premiums generally tax deductible for the company?","url":"https://dealroom.so/sba-7a/questions/are-business-life-insurance-premiums-generally-tax-deductible-for-the-company"},{"question":"Can an SBA 7(a) loan help me acquire another company?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-help-me-acquire-another-company"},{"question":"What distinguishes a company redemption from a cross-purchase buyout for SBA?","url":"https://dealroom.so/sba-7a/questions/what-distinguishes-a-company-redemption-from-a-cross-purchase-buyout-for-sba"},{"question":"Does my business need to be a for-profit company to qualify?","url":"https://dealroom.so/sba-loans/basics/does-my-business-need-to-be-a-for-profit-company-to-qualify"},{"question":"Can the personal guaranty be limited for certain passive investors or minority owners?","url":"https://dealroom.so/sba-7a/questions/can-the-personal-guaranty-be-limited-for-certain-passive-investors-or-minority-owners"},{"question":"What if the primary business assets are specialized machinery with limited resale value?","url":"https://dealroom.so/sba-7a/questions/what-if-the-primary-business-assets-are-specialized-machinery-with-limited-resale-value"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Limited Liability Company","url":"https://dealroom.so/glossary/limited-liability-company","source_type":"DealRoom Data"}}