An LLC is designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership.

Formation is more complex and formal than that of a general partnership. The owners are members, and the duration of the LLC is usually determined when the organization papers are filed. The time limit can be continued if desired by a vote of the members at the time of expiration.

• Legal entity separate from individuals
• Limited personal liability
• Continuity of existence
• Continuity of management
• Easier to raise capital
• Incentive to key employees
• Readily transferable interests
• Possible separation of ownership and management

• Difficult, costly formation
• Subject to close government regulation
• Scope limited by company charter
• Inflexibility of operations