A Limited Liability Company (LLC) is a US business entity structure that combines pass-through taxation with limited liability protection for owners (members). Profits and losses flow through to owners' personal tax returns rather than being taxed at the entity level. LLCs are common for bootstrapped businesses, lifestyle ventures, professional services firms, and small businesses, but typically incompatible with venture-capital fundraising because most institutional investors require C-corporation structure. It is the default starting entity for most non-venture US businesses and the wrong default for any company planning to raise from VCs.
The structural advantages of an LLC: pass-through taxation (no entity-level federal tax; profits...