What is an LLC? - Free Legal Resource on UpCounsel
LLC Limited Liability Company.1 min read
What is an LLC?
An LLC (Limited Liability Company)
A limited liability company or LLC is a hybrid between a partnership and corporation. Forming an LLC will create a legal entity distinct from its owner “members” giving limited liability like a corporation.
Additionally, forming an LLC will give fewer formalities than a corporation like that of a partnership in terms of taxes and the necessity of centralized management.
Unlike shareholders in a corporation, LLCs are not taxed as a separate business entity. Instead, all of the profits and losses are "passed through" the business to each member of the LLC. The LLC members then report any profits and losses on their personal federal tax returns, just like the owners of a partnership would.