A "limited liability company" or "LLC" is a form of business organization authorized by state law. An LLC gives the owners of the enterprise (the "members") protection from the debts and obligations incurred by the LLC. LLCs can also elect to be taxed as a partnership, thus incurring only one level of tax at the member-owner level. LLCs are often useful for holding investment real estate.
A "limited partnership" is an entity formed under state law that includes one or more general partners and one or more limited partners. Limited partners do not have personal liability for the debts and obligations of the limited partnership.