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An LLC is a type of business entity that combines several characteristics of a corporation and a partnership. As the name suggests, an LLC offers personal liability protection to its owners for company debts and liabilities. This liability protection is similar to the liability protection offered to shareholders of a corporation. An LLC also offers flexibility to its owner in that the owners can elect to be taxed either as a partnership or as a corporation and the owners can choose how the LLC will be managed. The creation of an LLC generally requires the preparation of certain documents that are filed with the Secretary of State (or other appropriate department) in your state of organization.

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