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. As a result, the personal assets of the shareholders are protected in the event of a lawsuit against the LLC, bankruptcy and/or the debts of the LLC. The LLC is frequently desired due to this limitation of liability. Furthermore, 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.