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In the United States, a limited liability company (LLC) is a type of corporate structure that shields its owners from being held personally liable for the obligations of the firm. Limited liability companies are hybrid legal entities with traits shared by corporations, partnerships, and sole proprietorships. The provision of flow-through taxes to the members of an LLC is a feature of a partnership rather than an LLC, despite the fact that the limited liability aspect is similar to that of a corporation. State legislation allows limited liability firms, and each state has its own set of rules controlling them. Members of an LLC are its owners.
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