LLCs (Limited Liability Companies)

An LLC, or Limited Liability Company, is a flexible business structure that blends features of corporations and partnerships. It provides owners, called members, with protection from personal liability for business debts and legal actions, meaning their personal assets generally aren’t at risk. LLCs offer pass-through taxation, so profits are reported on members’ personal tax returns, avoiding double taxation. They also provide organizational flexibility and fewer formal requirements compared to corporations. Overall, an LLC allows entrepreneurs to operate professionally while safeguarding personal assets and maintaining manageable administrative duties.