LLC limited liability company

A Limited Liability Company (LLC) is a type of legal business entity that merges characteristics of both corporations and partnerships (or sole proprietorships). It is a highly popular business structure in the United States due to its unique combination of flexibility in management, favorable tax options, and the personal liability protection it offers to its owners, known as members.

One of the key advantages of an LLC is its limited liability protection, meaning the personal assets of its members are generally shielded from the company's debts and legal liabilities, similar to a corporation. This makes it an attractive option for entrepreneurs who want to protect their personal assets while running a business.

However, unlike a corporation, an LLC has fewer formal requirements, such as no need for annual meetings or a board of directors. In terms of management flexibility, an LLC allows owners to choose how they want to manage the business. It can be managed by its members (known as a member-managed LLC) or by appointed managers (known as a manager-managed LLC). This flexibility gives business owners the ability to structure their operations in a way that best fits their needs.