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9. Definition of an LLC

A limited liability company, or LLC, is a legal entity created under state law that has characteristics of both a corporation and a partnership. Like a corporation, the owners of an LLC are not personally liable for business debts. Like a sole proprietorship and partnership, an LLC has operating flexibility and its owners may elect to have it treated as a pass-through entity for tax purposes. This means that LLC profits are passed through and taxable to the owners of the LLC. Visit our LLC section for more information.

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