A limited liability company (LLC) is a type of business structure that combines the benefits of both a corporation and a sole proprietorship. It provides personal liability protection to its owners, known as members, meaning their personal assets are generally protected from business debts and legal actions. This makes LLCs a popular choice for small business owners. LLCs also offer flexibility in management and taxation. They can be taxed as a sole proprietorship, partnership, or corporation, allowing members to choose the most beneficial tax treatment. Additionally, LLCs require less formal paperwork and ongoing compliance than corporations, making them easier to manage.