Limited Liability Company (LLC) is a legal business entity that combines the characteristics of a corporation and a partnership. LLCs offer the benefits of limited liability for its owners, which means that the owners are not personally liable for the debts and obligations of the company beyond their initial investment.
There can be one or multiple owners of an LLC, known as members, who can be individuals, corporations, or other LLCs. The profits and losses of the LLC are typically passed through to the members, who report them on their individual tax returns.
LLCs provide flexibility and management structure similar to partnerships and are known for their simplified business record-keeping and management procedures. LLCs are popular among small business owners, entrepreneurs, and real estate investors.
Overall, an LLC provides the owners with the protection of limited liability, pass-through taxation benefits, and flexible management structure, making it an attractive option for many business owners.
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