Main Guide: Starting a Business.
A limited liability company (LLC) is a hybrid business entity that has certain characteristics of both a corporation and a partnership / sole proprietorship. While an LLC is a business entity, it is not incorporated and thus is not a corporation. The primary characteristic that a LLC shares with a corporation is limited liability and the primary characteristic it shares with a partnership is pass-through income taxation. A LLC is often more flexible than a corporation, and is well-suited for businesses with a single owner.