Limited Liability Company (LLC)

A limited liability company (“LLC”) is a business entity that functions as a distinct legal “person” separate from its owners. In that role, it offers the owners protection from personal liability for business debts. An LLC is typically a “pass-through” entity for tax purposes, meaning taxes are not paid at the company level, but rather, the profits and losses of the business pass through to its owners, who report them on their personal tax returns. For more information see Crash Course on LLC Management and Structure.