Limited Liability Company (LLC)

Why entrepreneurs choose an LLC

An LLC is one of the most popular business structures in the U.S. It offers the flexibility to run your business your way — without the strict rules and formalities that come with corporations — while shielding your personal assets from business debts and legal liabilities. You're not required to form a board of directors, hold annual meetings, or keep formal corporate records.

Liability protection & tax benefits

One of the biggest reasons to form an LLC is liability protection. If your business is ever sued or owes money, your personal assets — like your home, car, or personal savings — are typically off-limits. You can also choose to be taxed as a sole proprietorship, partnership, S corporation, or C corporation.

Important considerations

Although LLCs are easier to manage than corporations, they still require some upkeep. You'll need to file certain documents with your state, pay annual fees, and stay up to date with compliance requirements. LLCs also can't issue stock or go public, which may be limiting if you plan to raise capital from investors.

How to start an LLC