A limited liability corporation, also known as an "LLC," is a corporation where the shareholders of the corporation have liability restricted to their interest in the business. Therefore, the assets of the shareholders as private individuals are protected. This protection extends to instances where there is a lawsuit against the LLC, the LLC declares bankruptcy or there are impending debts of the LLC. The LLC is frequently sought by businesses in order to receive the benefit of the limitation of liability. In addition, the LLC avoids double taxation, as the income generated is reported just once to the Internal Revenue Service as personal income profits of the shareholders. Moreover, the LLC is advantageous because there is no limitation on the number of shareholders, the LLC may own other subsidiaries and different types of stock may be issued. In addition, the LLC offers flexibility, as the shareholders can enter into an agreement as to the division of income generated by the LLC.