Limited Liability Company (LLC)
A limited liability company is a form of Business Entity. LLCs are popular because:
Like a corporation, the LLC's owners have limited personal liability for the debts and actions of the LLC; and
Like a Partnership, an LLC is a Pass-through Entity for federal tax purposes, i.e., it automatically avoids Double Taxation.
Owners of an LLC are called members. Since most states do not restrict ownership, members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit “single member” LLCs, i.e., those having only one owner.
Caution: If you are a one-person business and organize as a single-member LLC instead of remaining a Sole Proprietorship, you cannot avoid paying Employment Taxes on your employee-spouse.
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