A limited liability company (LLC) is best described by the statement: it is normally owned and managed by the same persons. This means that in most cases, the owners (who are referred to as members) also take part in the management of the business.
Unlike a corporation, where ownership and management functions are typically separated, an LLC offers flexibility by allowing its members to directly manage the company without the need for a formal board of directors. Members can make decisions about the company’s operations while enjoying personal liability protection, meaning their personal assets are generally shielded from business debts and liabilities.
While it is possible for an LLC to have a single owner, and there are some non-profit LLCs, these are not defining characteristics of the LLC structure as a whole. Additionally, describing it in legal terms is too vague to capture the essence of what an LLC usually entails.