A limited liability corporation is also known as an "LLC." An LLC is a corporation where the shareholders of the corporation possess limited liability for the activities of the corporation. Thus, the personal assets of the shareholders of the LLC are protected from attachment by creditors. As a result, many individuals seek to form the LLC. In addition, the Internal Revenue Service gives favorable tax treatment to an LLC. Chiefly, the LLC is not subject to double taxation. Thus, the income generated by the LLC is reported to the IRS as the shareholders' individual personal income as opposed to the earnings of the LLC. Other advantages to the LLC includes a high degree of flexibility in management of the LLC business, no limitation on the number of shareholders, ownership of subsidiaries and the ability to issue multiple types of stock.