A Limited Liability Company (LLC) is a business entity that can be registered at the state level. The primary purpose of an LLC is to limit the personal liability of its owners, similar to the protections offered by C corporations and S corporations. However, an LLC offers simpler and more flexible tax requirements.

One of the unique advantages of an LLC is its flexible taxation options. By default, an LLC is treated as a pass-through entity for federal taxes, meaning it is taxed like a sole proprietorship, partnership, or S corporation. However, an LLC can also choose to be taxed as a C corporation. This flexibility allows the members (owners) of the LLC to select the tax structure that best suits their financial needs, while remaining fully compliant with the law. The benefits of an LLC include potential tax savings and personal liability protection, making it an attractive option for many business owners.