Which of the following best describes a limited liability company (LLC)?

A limited liability company (LLC) is best described as a hybrid business structure that provides liability protection to its owners, who are known as members. This means that the personal assets of the members are generally protected from the debts and liabilities of the business, which is one of the primary reasons for choosing this structure. An LLC combines elements of both corporations and partnerships, offering flexibility in management and taxation while ensuring that members are shielded from personal liability beyond their investment in the business.

In contrast, the other options do not accurately capture the nature of an LLC. Describing an LLC solely as a type of partnership fails to recognize its unique characteristics, particularly its liability protection features that are more akin to those of corporations. Calling it a government-run business completely misrepresents the concept, as LLCs are established by private individuals and governed by state laws. Additionally, defining it as a foreign corporation is misleading, as an LLC can be formed under the laws of any state, and the term "foreign" pertains to the jurisdiction outside of where it is organized, which does not directly relate to the characteristics of an LLC itself.