A Limited Liability Company (LLC) has characteristics of a corporation and offers some of the benefits of a corporation, particularly the limitation of an owner's liability. Generally, an LLC is a business entity that offers limited liability protection and pass-through taxation. Most LLC’s can be managed by either by the members themselves or by outside managers.

As with Corporations, the LLC legally exists as a separate entity from its owners. Therefore, the owners cannot typically be held personally responsible for the debts and liabilities of the LLC.

Some advantages of an LLC are as follows:

• LLCs allow for pass-through taxation;
• Members on an LLC are not typically held personally responsible for the debts and liabilities of the business;
• LLCs generally have no ownership restrictions;
• LLC members have flexibility in structuring the management of the company;
• An LLC does not require as much annual paperwork, or have as many formalities, as a C Corporation or an S Corporation;
• Anonymity and asset protection;
• The LLC itself does not pay Federal Income Tax.