Limited Liability Company ("LLC")
An LLC is a separate legal entity formed and operated in accordance with the law of the state in which the LLC is organized. LLC's are one of the new variations of business entity and are attractive to many new business owners because of the corporate attribute of limited liability for the owners, who are called "members", and flow through taxation. The LLC is managed and controlled by its "members". Thus, the "managers" of an LLC can be all of its members, some of its members, managers (who are not owners) appointed by members, or some combination of managers and members. More complex LLC's have officers who manage the day-to-day affairs of the LLC, similar to those in a corporation.
"Members" and "managers" of an LLC have limited liability. "Members" may participate in the business activities without losing their limited liability.