Limited Liability Company (LLC)
A Limited Liability Company is a legal entity that protects individuals’ personal assets from liabilities arising out of the business or investment activities taking place within the LLC. Owners of LLCs can elect to have the company taxed as a disregarded entity, partnership, C corporation or S corporation which means the LLC itself generally does not pay any taxes on the income it earns unless it opts to be taxed as a C corporation. LLCs have become very popular in recent years due to the limited liability protections they offer and their ability to avoid double taxation.