The LLC is taxed as a partnership. This means profits are taxed as part of your personal income tax return. The LLC exists separate from its owners. If a member dies or sells his or her interest, the LLC can continue to exist. Also, you normally need to hire an attorney to help you, and this costs money.
Some states require that there be more than one owner.
LLCs are more complicated to set up than sole proprietorships or partnerships. You need to file a certificate of formation or articles of organization with the secretary of state. In addition to the articles of organization, LLC members should create an operating agreement to govern the LLC's management. In most states, contributions can come in the form of cash, property or services. Liability of members LLC members are not personally liable for the LLC's debts and obligations.