Knowledge Center

Limited Liability Company Glossary


Sole proprietorships, partnerships, LLCs and S corporations are pass-through entities for federal income tax purposes. This means these entities are not subject to income tax. Rather, the owners are directly taxed individually on the income, taking into account their share of the profits and losses. This avoids double taxation.
When you are ready to start your own business, LegalZoom will help. See which business may be right for you, or get legal help from an independent attorney with our legal help plans.

Banner Icon Make today the day you start something amazing. Form your LLC. Get Started