Q.What is a Limited Liability Company (LLC)?
A.The limited liability company (LLC) is a hybrid of the Partnership and Corporation. The LLC, if properly formed and maintained, offers its members limited liability protection (like a corporation) and pass-through tax treatment (like a partnership).
There are three types of LLC's in most states: (1) a single member LLC; (2) a multi-member member managed LLC; and (3) a multi-member manager managed LLC. The LLC is created when proper Articles of Organization (or the equivalent under the laws of your particular state) are filed with the proper state authority, and all fees are paid. State laws typically impose additional pre or post-creation requirements, like the filing of a statement of information (California) or your Operating Agreement.