LLC (Limited Liability Company)

Definition: An LLC, or Limited Liability Company, is a business structure that combines the limited liability protection of a corporation with the flexibility and simplicity of a sole proprietorship or partnership. Owners, called members, are typically not personally responsible for the company’s debts or liabilities.

Example: If you operate a small online shop as an LLC and the business incurs debt, your personal assets (like your home or savings) are generally protected from creditors.