A Uniform Commercial Code (UCC) filing is a type of legal action that a creditor takes to attach a lien to a business. This process serves as an official notice that they have an interest in the debtor's personal or commercial property.
Many business owners choose to set up their business as a limited liability company (LLC) because it allows them to report and pay their tax obligation along with their personal return. Business owners also like that an LLC comes with built-in liability protection that keeps potential creditors' hands off their assets. It's not uncommon for many business owners to decide to form other business entities to minimize their tax burden. An S Corporation is a typical formation that business owners select.