Limited liability company

Limited liability companies (LLC for short) are the United States-version of private limited companies. Although an LLC is not a corporation under the laws of every state, they sometimes combine the pass-through taxation of partnerships or sole proprietorships with the limited liabilities of corporations. In some U.S. states LLCs can be organized as not-for-profit networks.

LLCs can be mixed-type legal entities having forms of both a sole proprietorship and a corporation. However, it depends on how many actual owners, also known as members, there are.