Start Your LLC with Confidence and Ease.

A Limited Liability Company (LLC) is a business entity that combines characteristics of both corporations and partnerships. Specifically, an LLC has the same limited liability protections afforded to corporations and, by default, the LLC is taxed as a partnership.

When someone forms an LLC, they are essentially creating an entity separate from themselves. Should this separate entity (the LLC) be sued, it is the entity, not the individual who created the entity, that is being sued (this is what it means to have limited liability). The advantage to limited liability is that, with few exceptions, should the LLC be sued, the LLC’s assets are at stake, not the individual’s.

A corporation, by default, is first taxed on its net income, then taxed again at a personal level when that net income is distributed to an owner. An LLC, like a partnership, is not taxed. The profits of an LLC are passed to the owners (called members) and taxed as personal income. This is referred to as pass-through taxation and only changes if the LLC elects to be taxed as an S-corporation or C-corporation. Limited liability and pass-through taxation are the two main defining characteristics of the LLC.