The Limited Liability Company (“LLC”) is probably the most popular form of business entity today. The LLC is a liability-limiting entity formed under state law. It is a hybrid entity that offers the liability protection of a corporation with the option to be taxed as a partnership or a corporation. An LLC is made up of members, as opposed to shareholders. Individual members are typically protected from liability so long as the corporate like formalities are observed. That means that you do need to register with the state and pay attention to state laws (like filing annual reports). On the plus side, LLCs have far fewer corporate like formalities than traditional corporations.