LIMITED LIABLILITY COMPANY
A limited liability company (abbreviated L.L.C. or LLC) is a form of business
organization created by state statute which limits the liability of the organization's owners to their investment in
the company. Often incorrectly called a "limited liability corporation" (instead of company), it is a hybrid
business entity having certain characteristics of both a corporation and a partnership or sole proprietorship (depending on
how many owners there are).
An LLC, although a business entity, is a type of unincorporated association and is not
a corporation. The primary characteristic an LLC shares with a corporation is limited liability, and the primary characteristic
it shares with a partnership is the availability of pass-through income taxation. It is often more flexible than a corporation
and it is well-suited for companies with a single owner.
Incorporation is the formation of a new corporation (a corporation being a legal
entity that is effectively recognized as a person under the law). The corporation may be a business, a non-profit organization,
sports club or a governmental unit.