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What is a Limited Liability Company?
A limited liability company (LLC) is a relatively new business form. Like corporations and partnerships, it is a separate legal entity. An LLC is a combination of a corporation and a partnership. An LLC is taxed like a partnership but gives the protection of limited liability. An LLC must have two or more members (i.e. owners) In California, an LLC cannot be established for certain professional services such as attorneys, accountants, and doctors. However, these professionals can register their general partnership as a limited liability partnership to receive the benefit of limited liability.