<Tr> <Td> <Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> </Td> </Tr> <Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> <P> A limited liability company (LLC) is the United States - specific form of a private limited company . It is a business structure that combines the pass - through taxation of a partnership or sole proprietorship with the limited liability of a corporation . An LLC is not a corporation in itself; it is a legal form of a company that provides limited liability to its owners in many jurisdictions . LLCs are well - known for the flexibility that they provide to business owners; depending on the situation, an LLC may elect to use corporate tax rules instead of being treated as a partnership, and, under certain circumstances, LLCs may be organized as not - for - profit . In certain U.S. states (for example, Texas), businesses that provide professional services requiring a state professional license, such as legal or medical services, may not be allowed to form an LLC but may be required to form a similar entity called a professional limited liability company (PLLC). </P> <P> A limited liability company (LLC) is a hybrid legal entity having certain characteristics of both a corporation and a partnership or sole proprietorship (depending on how many owners there are). An LLC is a type of unincorporated association distinct from a corporation . The primary characteristic an LLC shares with a corporation is limited liability, and the primary characteristic it shares with a partnership is the availability of pass - through income taxation . It is often more flexible than a corporation, and it is well - suited for companies with a single owner . </P>

What is the license to form a corporation issued by state government called