LLCs (Limited Liability Companies) are a type of business structure that combines the liability protection of a corporation with the simplicity and flexibility of a partnership. Members of an LLC are not personally responsible for business debts or obligations, meaning their personal assets are protected.



LLCs are often preferred by small business owners and startups as they are easier to manage and have fewer formalities compared to corporations. In terms of taxes, LLCs have the option to be taxed as a sole proprietorship, partnership, or corporation. This flexibility in taxation makes LLCs a popular choice for small businesses.