Limited Liability Company

n. business or company organized in such a manner that its owners and shareholders are not personally liable for debts or other business liabilities (such as damages from lawsuits)

This article is about a U.S.-specific corporate form; for a general discussion of entities with limited liability, see corporation. A limited liability company (denoted by L.L.C. or LLC) in the law of many of the United States is a legal form of business company offering limited liability to its owners. It is similar to a corporation, and is often a more flexible form of ownership, especially suitable for smaller companies with a limited number of owners. Unlike a regular corporation, a limited liability company with one member may be treated as a disregarded entity, so the member is often singled-out as a person performing the actions of the LLC. A limited liability company with multiple members may choose, generally at the time that the new entity applies for a US federal taxpayer ID number, to be treated for U.S. federal taxation purposes as a partnership, as a C corporation, or as an S corporation. An LLC can elect to be either "member managed" or "manager managed."
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An entity which has corporate personality and limited liability for all its members, but which in all other respects behaves like a partnership.

A business structure that is a hybrid of a partnership and a corporation. Its owners are shielded from personal liability and all profits and losses pass directly to the owners without taxation of the entity itself.