{"ok":true,"canonical_url":"https://dealroom.so/glossary/llc","api_url":"https://dealroom.so/api/public/glossary/llc","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":"llc","term":"LLC","aka":"Limited Liability Company","group":"People and paperwork","definition":"A business structure that combines the liability protection of a corporation with the pass-through taxation of a partnership or sole proprietorship. It's a common and flexible choice for buyers.","what_it_means":"Many buyers form an LLC to acquire a business using an SBA loan. Like corporations, all owners with 20% or more equity in the acquiring LLC must personally guarantee the loan. This structure offers personal asset protection from business debts, but the SBA guaranty penetrates that for the loan.","url":"https://dealroom.so/glossary/llc","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"corporation","term":"Corporation","url":"https://dealroom.so/glossary/corporation"},{"slug":"partnership","term":"Partnership","url":"https://dealroom.so/glossary/partnership"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"sole-proprietor","term":"Sole proprietor","url":"https://dealroom.so/glossary/sole-proprietor"}],"related_questions":[{"question":"Does my business legal structure (like LLC or Sole Proprietorship) affect SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-loans/basics/does-my-business-legal-structure-like-llc-or-sole-proprietorship-affect-sba-7-a-loan-eligi"},{"question":"Does my business need to be set up as an LLC or Corporation for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/does-my-business-need-to-be-set-up-as-an-llc-or-corporation-for-an-sba-7-a-loan"},{"question":"Are there any specific business entity structures (e.g., LLC, S-Corp) required for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/are-there-any-specific-business-entity-structures-e-g-llc-s-corp-required-for-an-sba-7-a-l"},{"question":"What are the key considerations for a lender when approving a material change in the borrower's business entity structure (e.g., sole proprietorship to LLC) during servicing?","url":"https://dealroom.so/for-lenders/questions/what-are-the-key-considerations-for-a-lender-when-approving-a-material-change-in-the-borro"}]},"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 — LLC","url":"https://dealroom.so/glossary/llc","source_type":"DealRoom Data"}}