limited liability company (LLC)
A statutorily authorized, unincorporated entity that provides corporate-like limited liability for its owners but is managed, in many respects, like a partnership, with similar favorable income tax treatment. Unlike a corporation, in an LLC, a real estate venture has pass-through tax advantages of a partnership, flexibility in the number and type of ownership, limited liability of a corporation, and the ability of each owner to participate directly in management. It is governed under an operating agreement in which owners are called ?members? and in which management responsibilities may be given to persons who are not owners.