Limited Liability Company (LLC) Legal Meaning and Definition

Here is a simplified definition of the legal term Limited Liability Company (LLC).

Limited Liability Company (LLC) (noun)

A type of business structure that combines elements of both partnerships and corporations. An LLC provides its members with limited liability, meaning members are personally protected from the company's debts or liabilities. Financially, an LLC operates more like a partnership, with the company's earnings and expenses passing through to the individual members' personal tax returns, thus avoiding double taxation that corporations usually experience.