LLC or Limited Liability Company is a flexible business structure affording protection and various tax-filing options. LLCs can be owned by one or more people and can be filed as a single-member LLC or a multi-member LLC. LLCs have several advantages that a limited liability structure works to protect you from lawsuits, double taxation, and reduces personal obligations and paperwork over corporations.
Unlike most other organizations, LLCs can file income tax in several ways. For example, you can choose to be taxed as an S-Corporation, Partnership, C-Corp, or disregarded entity.
For small businesses, a limited liability company, whether organized as a professional limited liability company (PLC) or limited company (LC) offers a mix of personal asset protection and simplicity. The primary advantages are that personal assets are not tied to the business as in a sole proprietorship or general partnership. In addition, LLCs are easy to form and maintain without double taxation, unlike corporations.