A limited liability company is a form of a private limited company. It is an entity that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. A limited liability company is not a corporation; it is a legal form of a company that provides limited liability to its owners in many jurisdictions. In most cases, the fee to incorporate a limited liability company is relatively lower compared to incorporating an IBC in the same jurisdiction. In a limited liability company entity, there is no shareholder but there are members.