LLC’s small businesses

While an LLC (Limited Liability Company) is not a small business, it is a potential hybrid-style legal structure that a small business can operate under. Balancing the benefits of a corporation and a partnership, an LLC separates a small business owner from the business itself.

This means the personal assets of the owner (called a member) are protected from creditors. LLCs can have single or multiple members, who can each hold membership units or stakes in the business. For example, a two-member LLC can split profits and ownership by 50% to each member.