Limited Liability Company

A limited liability company (LLC) is a form of corporate structure and ownership for a private company in which the private company's shareholders are protected from liability (as with a corporation or an "Inc.") but is taxes like a partnership (also known as "pass through" taxation) where the private company doesn't pay income taxes directly. At the end of each tax year, the LLC send its shareholders a form showing the shareholder's share of the private company and the shareholder’s share of the LLC's profits, losses and equity balance.