<p>To be precise, an LLC is the acronym for Limited Liability Company. It is a business structure which derives properties from both the corporation and sole ownership model of business. An LLC always qualifies to pass through the taxation feature of a partnership or sole ownership model of business. At the same time, it limits the liability of the owners which resembles a corporation.<br /><br />LLC is not regarded as a separate entity and that&rsquo;s why the company doesn&rsquo;t pay taxes or counts on its losses. This aspect is taken care of by the owners as they have to account for the profits amassed by the business. They have to report these stuffs on their personal income tax returns. But like corporations, LLC-based businesses are secured from disclosing personal liabilities.</p>