Limited Liability Company (LLC)

A Limited Liability Company (LLC) is a type of business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. This means that the business owners are not personally liable for the company’s debts or liabilities.

For example, if an LLC takes out a loan, the business owners are not personally responsible for repayment. Instead, the LLC is responsible for repaying the loan.

The structure of an LLC can vary depending on the number of owners and the type of business. Generally, an LLC is comprised of members who can be individuals, other companies, or a combination of both.