Brand Deals, Sponsorship & Business
Limited liability company
Also called: LLC
An LLC is formed in a particular state and treated as its own legal entity, so in most circumstances a claim against the business stops at the business. Tax treatment is a separate question: by default a single-member LLC is disregarded and its profit flows to the owner's personal return, though it can elect to be taxed as an S corporation, which is often why creators form one.
The protection can be lost, and mixing personal and business money through one account is how that usually happens. The UK equivalent is a limited company, under different rules. This is a general description and not legal advice.