Multiple -Member LLC, being taxed as a partnership, is the LLC owned by an entity or more than one individual where as a single member LLC is owned by one member also is taxed as a sole proprietorship. All states do permit single owner LLC.

This new type of business structure, LLC provides the best features of corporation with those of the sole proprietorship or partnership. LLC is favouring many advantages which other business types lacks and they are

• Personal Liability Protection: The owner’s personal liabilities are not reachable by business creditors in an LLC since it is considered as a separate entity for being legally distinct in nature. The restriction of LLC member’s liability of limiting it to the amount of money invested by that person in the LLC is a great feature to be noted on. So, LLC members enjoy the same limited liability protection as the shareholders in a corporation.
• Tax Advantages: “Why LLC has acquired so much popularity in recent times?” is the biggest question that arises when we talk about LLC. The answer to this question is, the advantage of LLCs allowing the pass-through taxation. Being treated like the earnings from a partnership, a sole proprietorship or an S-Corporation, the earnings of an LLC is taxed only once. This advantage of limited liability protection is not offered by partnerships and sole proprietorship. But, we do see that S-Corporation, a much more restrictive business structure that is harder to maintain comes little closer to an LLC in this attribute.
• Transfer with ease: The selling of ownership interests to third parties can operate smoothly without disturbing the continued operation of the business is the biggest benefit of an LLC. If you have a look at selling interests in a sole proprietorship or general partnership, it sure requires loads of effort and time in comparison to an LLC. An owner needs to transfer assets, permits, bank accounts, business licenses and other legal documentation individually, which is a tedious process though. Even in S-corporations, the process is not pretty smooth like an LLC.
• No restriction on ownership: LLCs never lay any hard and fast rule on choosing the type of owners also the number of owners where as S-corporations cannot hold more than 100 stockholders. In fact, the stockholders need to be a resident or a citizen of the United States but you don’t see any such restrictions in an LLC.
• Raise capital easily: Being flexible enough to allow for many ways to raise capital, LLCs even allow new members by selling membership interests or even allows creating a new group of members with different voting or profit-sharing characteristics.
• A greater amount of credibility: Registered LLCs do enjoy legitimacy and greater credibility when they deal with other companies, banks, potential investors or partners. Since an LLC is not seen as an individual engaging in business rather as a legitimate company.
• Flexible ownership and management structure: Similar to general partnerships, LLCs do enjoy the freedom of establishing any organizational structure after a mutual agreement signed upon by the members. In fact, profit interests are separated from voting interests. Owners enjoy the flexibility of separating or combining the interests of the investors into the company and of the people running the day-to-day operations.