A limited liability corporation, also known as an "LLC," is a corporation where the shareholders of the corporation have limited liability for the activities of the corporation. Therefore, personal assets of the shareholders of the LLC are protected in the event of a lawsuit against the LLC, bankruptcy and/or for the debts of the LLC. The LLC form is desirable for this reason, as well as the fact that the LLC receives favorable tax treatment by the Internal Revenue Service. The LLC is not subject to double taxation. Thus, the corporation's earnings are not taxed; rather the income generated gets reported to the IRS as the shareholders' individual personal income. In addition, the LLC corporate form has other advantages. The LLC has no limitation on the number of shareholders. Moreover, the LLC may own multiple subsidiaries and issue different types of stock. Furthermore, the LLC form offers a high degree of flexibility, as the shareholders can enter into an agreement as to the division of income generated by the LLC.