Limited Liability Corporation (LLC)

An LLC is a hybrid business structure that provides its owners the limited liability advantages of a corporation and some of the flexibility of an unincorporated business.   The owners of an LLC are referred to as members instead of as shareholders, with the term units used instead of shares as in a C-corporation.

There can be both Single and Multiple-Member LLC's.  A multiple-member LLC has two or more owners, similar to partnerships.  A single-member LLC has only one owner, similar to an unincorporated sole proprietorship.

Instead of by-laws, most LLC's utilize an Operating Memorandum to specify how it operates.

The profits of an LLC are passed on through to the owners and are reported on the owners' personal tax return.