Limited Liability Company (LLC) Definition

Definition
A Limited Liability Company (LLC) is a business entity authorized by state law. This form of business organization allows the member(s) limited liability which provides the benefit of financial and legal protection.

Expanded Definition
Created by the order of state statutes, a Limited Liability Company (LLC) offers the benefits of corporations without the associated regulations. The Internal Revenue Service (IRS) has not created another business entity for federal income tax filing so an LLC must be classified as Disregarded, Partnership or Corporation.

Related Article
What is an LLC?
What is a disregarded entity?