A Limited Liability Company — a US business structure that separates personal assets from business debts while keeping flexible, pass-through taxation.
An LLC (Limited Liability Company) is a US business structure that puts a legal wall between you and your business. If the business is sued or can’t pay its debts, your personal assets — home, savings — are generally protected. By default an LLC’s profits still pass through to your personal tax return, so it doesn’t complicate your taxes much on its own.
For sellers, an LLC is a common upgrade from sole proprietor once you have real income or liability exposure. It costs something to form and maintain (state fees vary widely), but the protection and professionalism are often worth it. For buyers, hiring an LLC is routine and signals a more established operation.
An LLC is a legal structure, not a tax status — you can later elect S-corp treatment on top of it to potentially save on self-employment tax. The rules and costs differ by state, so confirm what makes sense for your income with a tax professional before you file.