The initials "LLC" represent the words "limited liability company." An LLC provides the limited liability features of a corporation, but the tax benefits of a partnership. Specific laws vary by state, but LLCs can consist of a single founder or more than one member.
LLCs differ from corporations in the area of profits and losses. The profits and losses go directly to the owners of the LLC, and the owners pay taxes on the gains. The government does not tax the LLC directly.
In 1977, Wyoming passed the first law establishing limited liability companies. In 1980, the Internal Revenue Service proposed taxing LLCs as corporations but later withdrew that proposal in 1983.