What does a LLC do?
Jackson Reed
Updated on January 14, 2026
An LLC gives you a structure for operating your business, including making decisions, dividing profits and losses, and dealing with new or departing owners. An LLC offers taxation options. Most LLCs are taxed as a sole proprietorship or partnership, but LLCs can also choose S corporation or C corporation taxation.
What does LLC mean for a company?
Limited liability company
Limited liability company/Full name
A limited liability company (LLC) is a business structure in the United States whereby the owners are not personally liable for the company’s debts or liabilities. Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.
Why is LLC so popular?
The LLC has become a popular small business structure in the United States, because it’s easy to form, and very flexible in the types of businesses for which it’s well suited.
What’s better Inc or LLC?
Both types of entities have the significant legal advantage of helping to protect assets from creditors and providing an extra layer of protection against legal liability. In general, the creation and management of an LLC are much easier and more flexible than that of a corporation.
What does a limited liability company ( LLC ) mean?
A limited liability company (LLC) is a business structure in the United States whereby the owners are not personally liable for the company’s debts or liabilities.
What makes a LLC different from a corporation?
While the limited liability feature is similar to that of a corporation, the availability of flow-through taxation to the members of an LLC is a feature of partnerships. 2 Limited liability companies (LLCs) are a business structure that is allowed under state statutes.
What do you need to know about a LLC?
LLCs (Limited Liability Companies) A limited liability company (LLC) is a popular business structure combining aspects of both corporations and partnerships. Here you will learn when forming an LLC makes sense, how to form an LLC in your state, what to put in an LLC operating agreement, and how LLCs are taxed. Nolo can help you create your LLC.
Who are the members of a LLC LLC?
Owners of an LLC are called members. Most states do not restrict ownership, and so members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit “single-member” LLCs, those having only one owner.
