What is an LLC (limited liability company)?

An LLC (Limited Liability Company) is a US business structure that separates your business from you personally - so if your business incurs a debt or gets sued, your personal assets are generally protected, and only the business's assets are on the line. ## Why founders choose an LLC - Liability protection: your business is legally separate from you, the owner. - Tax flexibility: by default, an LLC's profits and losses pass through to your personal tax return (no separate corporate-level tax), but you can also elect to have it taxed as a C-Corp or S-Corp if that fits your situation better. - Simple to run: LLCs don't require a board of directors, shareholder meetings, or the other ongoing governance a corporation needs - which generally makes them cheaper and easier to maintain. - Flexible ownership: an LLC can have one member, multiple members, or even be run by an appointed manager instead of its owners. ## How it compares to a C-Corp An LLC is generally the simpler, lower-maintenance option for most small and bootstrapped businesses. A C-Corp involves more formal governance (bylaws, a board, shareholder meetings) but is usually required if you plan to raise US venture capital. For a full side-by-side, see [LLC vs C-Corp: which is right for my business?](https://ask.doola.com/en/article/9044bc9c-whats-the-difference-between-an-llc-and-a-c-corp-and-which-is-right-for-my-business) ## Not sure it's right for you? We'd always recommend a quick chat with a licensed attorney or CPA for anything specific to your situation, but for most non-US founders starting a straightforward business, an LLC is the simplest way to get going.