A limited liability company (LLC) is a separate legal entity offering limited liability to its owners (called members) regardless of their participation in the business. The owners enter into an operating agreement that delineates their specific duties and how profits will be allocated. The LLC business structure does not require any corporate minutes or resolutions and is easier to operate. In Arizona, an LLC has fewer reporting requirements than a corporation, and does not require an annual report to be filed with the Arizona Corporation Commission. For U.S. federal tax purposes an LLC may be treated for U.S. federal tax purposes as a disregarded entity, partnership, C corporation or S corporation.