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An LLC can be formed in most states by following their specific process and paying a filing fee. An LLC, short for Limited Liability Company, is a business structure that provides limited liability. This means that the members of an LLC are only liable for the amount of money they have invested in the company. If the company goes bankrupt, the members are not responsible for any of the company's debts. An LLC is a good option for small businesses because it is easy to set up and it provides some protection from lawsuits.