What is LLC?
A Limited Liability Company — a business structure that separates your personal assets from the business.
An LLC (Limited Liability Company) is the most popular business structure in the US for a reason: it gives you 'limited liability' — meaning if the business gets sued or racks up debt, your personal house/car/savings are generally protected — without the heavy paperwork of a corporation.
LLCs are 'pass-through' by default: profits flow to your personal tax return, so the business itself doesn't pay separate income tax. You can form one in any state, usually for $50–$500, by filing 'Articles of Organization.'
For most freelancers, side hustlers, and small businesses, an LLC is the sweet spot between 'sole proprietorship' (too exposed) and 'corporation' (too much overhead).
Related terms
Definitions from the Business Dog Glossary — educational, occasionally satirical, never financial advice.