What is an LLC?

A limited liability company (LLC) is a separate legal entity that allows you to combine the management aspects of the partnership with the limited liability protection of a corporation. With an LLC, the owners can report their business gains and losses on their personal tax returns. There are also advantages with regard to tax issues and management flexibility of the LLC. An LLC. But just like a corporation, there are legal formalities that you must follow in order to maintain your status as an LLC.