LLC's only need one owner. The liability protection is still there. The drawback to LLCs is their income is the owner's income. He must pay taxes on the profit

LLC's only need one owner. The liability protection is still there. The drawback to LLCs is their income is the owner's income. He must pay taxes on the profit every year, at his personal marginal rate. What's left after taxes is his, not the company's. He can avoid taxes by investing back into the business, but the company can't have retained earnings. If the company runs short of cash, he must loan the money back to the company (or find someone else to borrow from).