What is an LLC?
Like a corporation, the members of an LLC are generally shielded from personal liability for the LLC’s debts and obligations if the LLC follows certain formalities. The owners of an LLC, called members, get many of the same tax benefits as partners in a partnership and enjoy the limited liability benefits of a corporation. Typically, unless the members choose otherwise, an LLC is taxed almost exactly the same way as partnerships and sole proprietorships. Profits and losses are passed through to the members of the LLC, and there is no income tax at the business level, or double taxation.