LLCs are a hybrid type of legal entity that has characteristics of a corporation, partnership or sole proprietorship. The biggest benefit of an LLC is that it protects its owners' personal assets should the business face any legal issues. Suppose your business is hit with a lawsuit. If your business is structured as an LLC, your assets are protected from any judgments that are imposed on the business. If your business can't afford to pay the judgment, you, as a business owner, won't be forced to pay the money from your personal finances.