Glossary · People and paperwork
Single-Member LLC
In short
This is a Limited Liability Company with only one owner. It provides personal liability protection, separating your personal assets from the business's debts.
What it means in a deal
Many small businesses are structured as single-member LLCs. When you acquire one, you'll typically purchase the assets, not the entity itself, to avoid inheriting unknown liabilities. Consult legal counsel to ensure a clean asset purchase agreement and proper business registration.
Related terms
Common questions about Single-Member LLC
- Does my business legal structure (like LLC or Sole Proprietorship) affect SBA 7(a) loan eligibility?
- Does my business need to be set up as an LLC or Corporation for an SBA 7(a) loan?
- Are there any specific business entity structures (e.g., LLC, S-Corp) required for an SBA 7(a) loan?
- What if the business I'm acquiring relies heavily on a single major customer?
- What is the maximum aggregate outstanding loan amount for a single 7(a) borrower?
- What is the highest amount of money a single SBA 7(a) loan can be?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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