The Limited Liability Company is best described as a Partnership given some of the business benefits of the Corporation. This entity seems to be preferred by lawyers and accountants. However, there seems to be an inherent conflict in licensing a business when set up as a construction business. The State of California has decided to no longer license Contractors if they decide to choose an LLC as the business entity unless they are a very large company. That may provide a clue to future licensing issues in Arizona. The Registrar of Contractors requires complete new licensing if the business entity changes. The U.S. Tax Guide uses the word partnership in every paragraph of the LLC section adding to the confusion. Be informed! If you need legal or accounting advice, GET IT!