This type of organization is a more recent invention. It typically combines
the liability protection of a corporation with a tax structure similar to that
of a partnership. As with a corporation, there is more legal separation between
you and your business than with other types of organization; this offers
greater liability protection of your personal assets. As with a partnership,
generally income is only taxed once, as personal income. Relative to a
partnership, the disadvantage is that a limited liability company is more
expensive and more difficult to set up.
Depending on where you plan on conducting business, another disadvantage of
LLCs is that some states impose special taxes.
Talk to your attorney for more information about forming an LLC.