LLC stands for "Limited Liability Corporation," meaning the business owners' liability is limited. Without the idea of "limited liability," the owners of a business can be held personally responsible for the debts of their business. The idea of "limited liability" originated in Germany in the late 19th century. By the 1940s, the idea had taken hold in 17 countries, but not the United States. In 1977, Wyoming became the first U.S. state to pass an LLC law modeled after the German statute. Many other states eventually passed their own version, though most of them have variations from other states.