A limited liability company (LLC) is a type of business entity that is independent and distinct from a person, similar to a corporation. The LLC is frequently described as a cross between a corporation and a partnership (or sole proprietorship). It provides limited liability protection similar to that of a corporation (i.e. your risk is limited to the amount that is invested in the LLC, and personal assets beyond that are usually protected).
It also provides for a more flexible formation and operation structure than a corporation while offering the pass-through taxation of a partnership or a sole proprietorship (if a single member LLC). The Limited Liability protection is one of the primary advantages of an LLC over a Partnership or a Sole Proprietorship.