A limited liability company (LLC) is a business structure that combines the benefits of both a corporation and a partnership. It protects its owners, known as members, from personal liability for the company's debts and obligations. This means that if the LLC faces financial trouble, the personal assets of the members are generally safe from creditors. LLCs offer flexibility in management and taxation. They can choose to be taxed as a sole proprietorship, partnership, or corporation, depending on what is most beneficial for the members. This adaptability makes LLCs a popular choice for small businesses and entrepreneurs looking for a simple yet effective way to operate.