Limited Liability Company
A Limited Liability Company (LLC) is a separate legal entity formed for limited liability and asset protection purposes. The owners of an LLC are called members and the management is referred to as managers. LLCs are frequently used for holding real estate and other personal assets. An LLC offers liability protection similar to that of a corporation but is taxed differently. The taxation of business profits distributed to the member(s) is determined by the individual tax rates of the member(s).