A Limited Liability Company (LLC) is a hybrid business structure that combines elements of a sole proprietorship or partnership with that of a corporation. Owners of sole proprietorships and partnerships remain fully liable for the debts and obligations of their businesses, but those who own corporations are not personally responsible for business debts.

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However, setting up and running a corporation can involve more expense and trouble than many small business owners wish to pursue. For individuals who want protection from personal liability for business debts without the hassle of operating a corporation, a Limited Liability Company can be an excellent alternative.

The primary benefit of a Limited Liability Company (LLC) business structure is that the owner(s) enjoy the same personal protection from responsibility for business debts as owners of incorporated businesses. Forming a Limited Liability Company is not really any more difficult than setting up a sole proprietorship or partnership, yet provides owners with the same level of protection as a corporate business structure.

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