Limited Liability Company

A business structure that relieves its owners of personal responsibility for the company's debts or liabilities. Instead, the responsibility falls on the LLC, meaning the firm is its own legal entity. LLCs are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.
LLCs provide the same legal and financial protections corporations do but can be simpler to operate. LLCs are taxed on a “pass-through” basis, meaning all profits and losses are filed through the member's personal tax return. Generally, LLCs are required to pay a one-time filing fee as well as an annual fee.