Limited liability businesses are also known as "limited liability companies." All states allow limited liability companies, or "LLCs" to be formed. LLCs offer the tax advantages of a partnership but with legal advantages of a corporation. Organizing the LLC requires that the LLC is registered and formally filed with the secretary of state where the LLC is formed. The LLC records indicate information about the LLC, such as the owners and the date of formation. The LLC usually functions pursuant to an operating agreement, whereby the LLC management and other matters are discussed. The key hallmark of the LLC is the limitation of liability. This limitation means that the personal assets of the individual members of the LLC cannot be subject to the creditors of the LLC. Furthermore, the LLC is treated as a "pass through" entity for tax purposes. Therefore, the LLC is not subject to double taxation. Rather, the profits earned by the LLC are not reported by the LLC but as income on the LLC members' personal income tax statements. This tax advantage makes the LLC quite attractive to many businesses.