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A Limited Liability Company (LLC) is an entity that on the one hand gives you limited liability, like a corporation, and on the other hand, it works much like a partnership. It's a separate legal entity, but there is no stock. Instead of having Shareholders and Corporate Bylaws, an LLC has Members and an Operating Agreement. It's fairly new, but quite popular with small companies from 1-5 principals. 

Advantages of a Limited Liability Company. Taxes are passed through to the members. Limited Liability for its Members. Fewer formalities. No stock, and much less complicated in terms of filings, taxation and stock.

Disadvantages of a Limited Liability Company. Not as many tax benefits as a corporation.