Limited liability and pass-through tax treatment are both combined in LLCs. This provides benefits that are unavailable from S Corps. The main benefits are: The possibility of greater loss deductions. Tax benefits can be disproportionately distributed among owners. When a new owner becomes a member of the business, or when allocations are given to owners in business liquidation, taxes are avoided or reduced. LLCs are sometimes permitted to have a single owner — laws vary by state. If permitted, the owner has the opportunity to elect to be under the check-the-box rules. A good alternative where sole ownership LLCs aren't permitted is an S Corp. This structure will also defer tax, in comparison to LLCs, when a corporate giant is buying out the business.