A Limited Liability Company (LLC) is a type of business structure that offers its owners protection from personal liability. It provides the business owners with the flexibility of operating the business like a partnership while still offering protection from personal liability. LLCs can be formed by a single individual or multiple people, and depending on how the LLC is structured, it can provide owners with several types of tax advantages.

An LLC is formed by filing paperwork and payment of the required fees with the Secretary of State's (or other applicable) office. This process varies from state to state, but generally includes the filing of Articles of Organization, Operating Agreements, and applicable fees. Once filed, the LLC is treated in the eyes of the law as a separate legal entity. This means that the LLC itself is responsible for its own debts, liabilities, and legal actions, not the owners personally. In addition, the LLC's owners have limited personal liability, which protects their personal assets (such as their homes, cars, bank accounts, etc.) from the debts and obligations of the company.

LLCs offer a range of tax benefits and flexibility. For example, they may be taxed as a sole proprietorship, partnership, S-Corporation, or C-Corporation, depending on the number of owners and the manner in which taxes are desired to be filed. LLCs are treated as "pass-through" entities (for federal income tax purposes), meaning that the LLC does not pay taxes on its profits. Instead, the profits are passed through to the owners, and the owners report their portion of the profits on their individual tax returns. This can be beneficial because it allows the owners to pay the lower individual tax rate, allowing them to keep more of the profits. Depending on the business's profits, it may also be eligible for additional deductions and credits that can help reduce the amount of tax that needs to be paid.

In summary, an LLC is a great choice for businesses seeking protection from personal liability and the flexibility of taxes that come with a business structure. By filing Articles of Organization, Operating Agreement, and other applicable documents with the state and maintaining the LLC in accordance with all applicable laws and regulations, LLCs can protect the owners and keep their personal assets safe while enjoying the tax advantages and flexibility of the LLC structure.