are limited liability companies taxed differently than corporations 
yes in the case of a corporation profits are first taxed at the corporate level and then taxed a second time once those profits are distributed to the individual shareholders 7 this double taxation is decried by many businesses and investors limited liability companies on the other hand allow the profits to be passed directly to the investors so that they are taxed only once as part of the investors personal income 2the bottom linellcs are important legal structures for forming a business limited liability means that the assets and debts of the business remain separate from the personal assets and debts of the llc s owners in most cases if an llc goes bankrupt creditors can only go after the assets of the business and not of the owners llcs also have several other beneficial features including simplified taxation and a relatively straightforward formation process this is part of the reason why llcs are the most common type of business in the u s 