A Limited Liability Company (LLC) is a business structure that combines the legal and tax aspects of a corporation and a limited partnership (LP). It was created to provide entrepreneurs with a flexible and beneficial option in terms of legal and tax liability.

Key features of an LLC:

1. Limited liability:One of the most attractive features of an LLC is that its members (owners) enjoy limited liability protection. This means that, in most cases, members are not personally responsible for the debts or legal obligations of the company. Their personal assets are protected.
   
2. Management flexibility:Members of an LLC can choose how they want to manage the company. They can opt for centralized management, similar to a corporation, or a more decentralized management, where members have greater control over operational decisions.
   
3. Tax treatment:An important advantage of LLCs is their flexibility regarding tax treatment. By default, they are considered "pass-through entities" for tax purposes, meaning that the company's income and losses are reported on the members' personal tax returns. However, members can choose for the LLC to be taxed as a corporation if that is more beneficial from a tax perspective.
   
4. Number of members:LLCs can have one or more members, making them suitable for both small and large businesses. In some states, it is even possible for a single person to own an LLC.
   
5. Flexibility in the distribution of profits and losses:Members can agree on how the company's profits and losses will be distributed, regardless of the ownership of the LLC. This allows for a customized ownership structure.
   
6. Simple documentation:Although LLCs require the filing of formation documents with the appropriate government entity and the drafting of an operating agreement, the documentation burden is generally lower compared to other business structures, such as corporations.
   

How to form an LLC:

The formation of an LLC generally involves the following steps:

1. Choose a name:You must select a unique name that complies with the legal requirements of your jurisdiction.
   
2. File formation documents:You must file the LLC formation documents with the appropriate government entity and pay the required fees.
   
3. Create an operating agreement:Members should draft an operating agreement that specifies how the LLC will be managed, how profits and losses will be distributed, and other important aspects.
   
4. Obtain necessary permits and licenses:Depending on the type of business and location, you may need to obtain specific licenses and permits.
   
5. Obtain a tax identification number:You may need to obtain a tax identification number (EIN) from the IRS in the United States.

In summary, a Limited Liability Company is a type of business entity that combines characteristics of a corporation with those of a limited liability partnership. The owners of an LLC are referred to as "members" and enjoy the protection of personal liability that is limited to the amount of their investment in the business, meaning that in the event of lawsuits or debts, the personal assets of the members are generally not at risk.

LLCs are well-known in the United States due to their reflection in terms of management and structure. Members can choose to manage the LLC themselves or can appoint a manager to do so on their behalf. Additionally, they have tax advantages, as they are generally allowed to choose to be classified as a corporation, a partnership, or a single-member entity (if applicable).

It is important to highlight that the laws and regulations related to LLCs can vary by state, so it is essential to consult with a lawyer or a tax professional before establishing an LLC to fully understand the legal and tax implications in your specific jurisdiction.