What is a Limited Liability Company (LLC) account?

An LLC is a business structure allowed under state statutes in the U.S. where the owners are not personally liable for the company’s debt or liabilities. Regulations vary from state to state. LLCs are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship. LLCs may elect not to pay federal taxes. Profits and losses are listed on the personal tax returns of the owner(s) or they may choose a different classification, such as a corporation.