Limited liability company
A limited liability company, also known as an LLC, is a form of association or a business entity that allows you to carry commercial activity under the state law. LLCs combine characteristics of both corporations and partnerships which are also two popular business entities.
With corporations, the LLC has in common the limited liability, meaning that as an owner or member of an LLC you are not personally liable for company debts. With partnerships, LLC is similar through its flexibility in operations and by its pass-through tax system which means that LLC profits are not taxed directly, but only after they have been passed through to LLC owners and as a part of their individual incomes.