If you’re an American citizen it’s likely that you’ve heard the three letter acronym LLC. The three letters in LLC stand for Limited Liability Company. The key words here are limited liability. Forming an LLC is the easiest way of structuring a business in a way that protects your personal assets in the event that your business is sued.
Limited Liability Companies can be under the ownership of one person or multiple persons. If an LLC is owned by multiple stakeholders these owners are known as “members.” An LLC with just one owner is known as a single-member LLC. If the LLC has multiple owners it is known as a multi-member LLC.