Limited Liability Corporation (LLC)

The LLC is generally considered advantageous for small businesses because it combines the limited personal liability feature of a corporation with the tax advantage of a partnership or sole proprietorship. Profits and losses can be passed through the company to its members, or the LLC can elect to be taxed like a corporation. LLCs do not have stock, and are not required to observe corporate formalities. Owners are called members, and the LLC is managed by these members or by appointed managers.