Quick Definition

A Limited Liability Company (LLC) is a business structure in the United States that offers personal liability protection to its owners, known as members, while allowing profits and losses to be passed through to their personal income without facing corporate taxes.

Examples

• 1A group of entrepreneurs starting a tech startup choose an LLC structure to protect their personal assets from business liabilities.
• 2A freelance graphic designer forms an LLC to separate their business finances from personal finances and take advantage of pass-through taxation.
• 3A real estate investor uses an LLC to own and manage properties, ensuring that any legal issues with the properties do not affect their personal assets.

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