5.1.2.3 Limited Liability Companies (LLCs)
In the last few decades, business owners looking for something offering more protection than a sole proprietorship or general partnership, as well as something less complex than actually starting a corporation, have begun embracing the use of limited liability companies, or LLCs.
As in sole proprietorships and partnerships, the profits or losses of limited liability companies are passed through to its owners, who are referred to as members. Unlike both sole proprietorships