Final answer:
A limited liability company (LLC) enjoys 'pass-through taxation', where the business itself does not have to pay taxes on its income. Instead, the owners of the LLC pay taxes on their share of the income on their individual tax returns.
Step-by-step explanation:
A limited liability company (LLC) is a type of business structure that enjoys a specific type of taxation. An LLC has the benefit of what is called 'pass-through taxation', which means that the business itself does not have to pay taxes on its income. Instead, the owners of the LLC, known as members, pay taxes on their share of the income on their individual tax returns.
This type of taxation is similar to partnerships, where each partner pays taxes on their share of the partnership's income. It is different from corporations, where the business itself is subject to corporate taxes on its income.