What type of organization has characteristics of a partnership but with limited liability?

A limited liability company (LLC) combines elements of a partnership with the benefits of limited liability. This means that while an LLC is typically run by its members (similar to a partnership), the personal assets of the members are protected from the liabilities and debts of the business. In other words, if the LLC encounters financial difficulties or is sued, the members' personal wealth is not at risk, which is a critical advantage over general partnerships where partners can be personally liable for business debts.

This structure allows for flexible management and profit distribution akin to a partnership, but with the protective features similar to those of a corporation. Thus, an LLC is an appealing option for many entrepreneurs seeking to balance flexibility in operation with risk management.