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A limited liability company combines elements of a corporation such as limited liability protection with the informal operating structure of a partnership. LLCs have a separate existence from the members who create and operate the business. Forming and operating an LLC will have significant tax and legal ramifications on the owners of the business.
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1. Significance
   
   • A major advantage of operating as an LLC is the personal assetprotection provided. The members and managers of a limited liability company have limited liability protection against business obligations and debts. This means if the company gets sued, the person or business that initiates the lawsuit cannot pursue the personal assets of an LLC manager or member as compensation for the company's obligation. Since an LLC has a separate legal existence, the company will accumulate its own debts apart from the members and managers of the LLC. An LLC member has liability only to the extent of their investment in the company
     
     

Read more: Advantages & Disadvantages of a Limited Liability Corporation | eHow.com http://www.ehow.com/about_7349679_ad...#ixzz1ex6m9sfs