Limited liability companies, or LLCs, are one of the most versatile business entities available to business owners today. Like corporations, they provide limited liability to the owners. However, they can be taxed as a sole proprietorship, partnership, or Corporation. This gives incredible flexibility in choosing the most advantageous tax entity while also providing limited liability. They are also not held to the same formality requirements of a corporation. Lastly, LLCs provide some protection from creditors of the owners of the LLC. This can be especially useful if the LLC has significant assets or there are multiple owners.
