A Limited Liability Company (LLC) is a type of business structure in the United States that combines characteristics of both corporations and partnerships or sole proprietorships. It provides limited liability protection to its owners (called members), meaning their personal assets are generally protected from business debts and lawsuits. At the same time, an LLC offers the tax flexibility of a partnership, allowing profits and losses to pass through to members' personal tax returns, avoiding double taxation typical of corporations

. LLCs are known for their flexibility in management and tax treatment. They can be formed by one or multiple members and may choose to be taxed either as a partnership or a corporation. This structure is easier to set up and maintain than a corporation but still offers significant liability protection

. There are different types of LLCs, including:

• Single-member LLC: Owned by one person, treated like a sole proprietorship for tax purposes.
• Multi-member LLC: Owned by two or more members, typically taxed like a partnership.
• Series LLC: Allows segregation of assets and liabilities into separate series within one LLC, useful for businesses with multiple ventures or properties

Certain professional services may require forming a Professional Limited Liability Company (PLLC) instead of a standard LLC, depending on state laws

. In summary, an LLC is a hybrid business entity that provides limited liability protection like a corporation while allowing pass-through taxation and operational flexibility like a partnership or sole proprietorship