An LLC, or limited liability company, is a cross between a limited company and a partnership. It allows the business to practice as a limited company, but with the same tax benefits and flexibility as a partnership.Continue Reading
LLCs are owned either by a sole person, two people, companies or other LLCs. Rather than referring to these people as owners, they are called "members." The IRS does not tax LLCs as a business. Instead, the profits and taxes pass through each member, and they report them on their personal tax returns, just as partnership owners do.
Each state has different requirements for forming an LLC. However, the process typically involves: