LLCn

LLCn refers to a limited liability company. This business structure combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. This means that the personal assets of the owners, known as members, are protected from the business's debts and liabilities.

Forming an LLC involves filing articles of organization with the state government where the business will be registered. The operating agreement, though not always legally required, is a crucial document that outlines the ownership structure, management responsibilities, and profit/loss distribution among the members. LLCs can have one or more members. Single-member LLCs are taxed like sole proprietorships, while multi-member LLCs are typically taxed like partnerships. However, LLCs can also elect to be taxed as a corporation.

The flexibility in management and taxation makes LLCs a popular choice for small businesses, startups, and real estate investments. They offer a balance between the administrative burdens of a corporation and the unlimited personal liability of a sole proprietorship or general partnership.