An LLC (or limited liability company) is a business entity that has some of the characteristics of a partnership and some of the characteristics of a corporation.  For example, the owners of an LLC are not personally liable for the debts of the company.  Their exposure to company debt is limited by their capital contributions similar to the way shareholders are sheltered from the liabilities of the corporation.   Furthermore, the owners of an LLC may participate in the management of the company (similar to partnerships); and also are not subject to dual taxation (like corporate shareholders.   The owners of an LLC are taxed once (and only once) at the time they take distributions of earnings.