Is a hybrid comprised of the better features of a corporation and the better features of a partnership. They may have perpetual existence and offers limited liability to the owners (called “members”) along with pass-through of the business’s income to the member’s personal tax return as in a partnership.

• Control - can manage business directly or may appoint non-member managers to operate.
• Liability - limited liability in the same way shareholders do in the corporation.
• Taxes - two or more members as a partnership for tax purposes.
• Administrative obligations - resembles the creation of corporations.