Know what an LLC is:

A Limited Liability Company (LLC) is a business formation that combines the features of a Corporation and a partnership. An LLC is not a corporation. However, it does offer its owners (called members) many benefits of a corporation without some of the disadvantages.

Know what the pros are with forming an LLC:

1) The major advantage in forming an LLC is that a LLC offers limited liability. Member of an LLC cannot be personally liable for the debts of the LLC unless they signed a type of personal guarantee of debts in the LLC.
2) All of the company profits and losses will flow through directly to it owners/members avoiding any double taxation.
3) Unlike forming a corporation, LLC does not have to have formal meeting or record any type of minutes. This makes operating an LLC a bit easier than operation a corporation.

Know what the cons are with forming an LLC:

1) Unlike a corporation which can last forever, an LLC can be dissolved if a member dies or withdrawals from the company.
2) An LLC can only raise funds from loans or from its members. It cannot rely on issuing stock to the general public to raise capital like a corporation can.
3) Although forming an LLC is easier to start and operate than a corporation it is a bit more complex than operating a sole proprietorship or a general partnership.