How Ohio’s New LLC Rules Will Affect Businesses
New changes to the state's rules
The concept that undergirds America’s most popular business entity can be traced to a court case called “The Rebecca” that began more than 200 years ago. IncNow reports that this was the first time U.S. courts established the principle of limited liability.
If you invested in a shipping sailboat that was about to cruise across the ocean and problems like running into another ship arose, you would be liable for paying only up to the amount of your investment—no more. The goal was to encourage commerce by limiting risk.
It would take until 1977, however, for the limited liability company to be birthed out of the Wyoming state legislature. It was conceived as an alternative to the corporation, which taxed both corporate profits and profit distributions to shareholders. As pass-through entities, LLCs became a way for their members to avoid double taxation.
Please select this link to read the complete article from Columbus CEO.