LLC Legal Construction

Limited Liability Companies (LLCs) blend features of proprietorships and corporations. LLCs are not corporations, but they feature limited liability for their owners that limits their personal legal and financial risks. They are considered pass-through entities for the purpose of income taxes, meaning LLCs revenues are not taxed at the company level but are instead taxed only as income of their owners.

LLCs do not have Boards of Directors and are governed directly by members as a whole. This can be done more informally than with a co-op structure, which elects a governing Board.