LLCs (Limited Liability Companies) are the newest class of business structure made available by law, they are considered a “hybrid” structure, since it is neither a partnership nor a corporation, but it combines many of the advantages of these two business entities. There are more and more new entrepreneurs with growth potential who prefer to establish their business from the beginning as an LLC that offers them certain tax advantages and in turn establishes limits to their personal obligations before any debt and/or lawsuit that their business could incur.
LLCs are characterized by being flexible and with tax advantages, in addition to the protection of personal assets thanks to their limited liability. Another primary feature of an LLC is that, unlike other business entities, you can choose how you are taxed. This is because, for tax purposes, an LLC is not considered a tax entity. LLCs can have a limited or perpetual life; it all depends on the agreement that exists between its members.
Although LLCs do not have as many requirements as other entities, they do depend on the state in which they are incorporated and the number of members of the entity (which is unlimited and members are not required to be residents or citizens of the United States).