Limited Liability Companies (LLC) are a common used corporation entity. They use the same taxation methods as a sole proprietorship and general partnership, but maintain the limited liability of a corporation.

Limited Liability Companies are separate legal entities, but are not corporations. This means they do not pay any Corporate federal taxes as a separate entity.

Entities Details:

• Liability: Combines a corporation’s liability protection and pass-through tax structure of a partnership.
• Taxation: IRS rules now allow LLCs to choose between being taxed as partnership or corporation.
  Formation: More expensive to create than partnership or sole proprietorship.
• Corporate Maintenance: Sale of member interests may take place per company policy. Significantly easier to maintain than a corporation.
• Greater flexibility than a corporation in allocating income to members