BizSugar.com › Strategy › Why Are LLCs So Popular? by @DeborahSweeney

Back in 2010, Assistant Professor of Law Rodney D. Chrisman published ‘LLCs are the New King of the Hill,’ a groundbreaking study on the popularity and growth of the limited liability company, in the Fordham Journal of Corporate and Financial Law. The LLC structure is relatively novel in the world of business law and, as is pointed in the article, was a bit obscure in the nineties. However, Professor Chrisman’s research showed that, by 2007, LLCs were being formed at a much faster rate than any other business structure, outpacing corporations by a margin of nearly two-to-one. What fueled this meteoric rise? And why, of the various business structures available, are limited liability companies preferred by so many new businesses?