What is LLC? A limited Liability Company profoundly known as LLC is important as it provides a business structure that offers limited liability protection and also pass-through taxation. The LLC exists as a separate unit from its owners so the owners are not held accountable for any kind of business debt and liability. Benefits of having LLC: As compared to a general partnership LLC benefits a business to have limited liability, flexible partnership, shareholders are the managers, pass-through taxation, heightened credibility, limited compliance requirements, owner-pleased income distribution, and also helps in keeping records and costs.