Limited liability companies are structured and taxed like a general partnership, but their owners have limited personal liability similar to that of a general corporation.

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Limited liability companies (LLCs) provide their owners with the benefit of limited personal liability, which means that their personal assets are separate from the company's debts and obligations. However, LLCs are not taxed as a separate entity like a corporation; instead, they are taxed like a partnership, with the profits and losses flowing through to the owners' personal tax returns.

Limited Liability Companies Are Structured and Taxed Like a General