A limited liability company is a US business structure that separates the owners' personal liability from the company's obligations while remaining flexible for tax purposes. Owners are called members. By default a single-member LLC is disregarded for federal income tax and a multi-member LLC is treated as a partnership.
Why does LLC matter for founders?
For most bootstrapped online businesses the LLC is the practical choice. It is not the right vehicle if you intend to raise US venture capital, where investors typically expect a Delaware C corporation - and converting later costs legal fees and can create tax friction.
Where can I read more about LLC?
Note: A plain-English definition for orientation, not legal or tax advice. Rules change - last checked 2026-07-21.