This diploma thesis deals with the question, whether the American Limited Liability Company (LLC) is a reasonable alternative to the Austrian GmbH. The LLC, in comprehension to other forms of corporate organisations in the USA, has the biggest growth rate and has become one of the most popular forms of enterprises. But why are so many entrepreneurs interested in the American LLC? The reason for its rising popularity among entrepreneurs is that it is a hybrid organizational form that offers the tax benefits of a partnership and, furthermore, its associates have the privilege of limited liability, just like a corporation. This means that the LLC associates have limited liability independent from their companys structure, and they can choose according to the check-the-box rules, whether they want to pay their taxes as a partnership or a corporation. Besides that, founding a LLC is very simple and economic. The paper will first briefly compare the American and the Austrian corporation law. Furthermore, the American LLC is explained, compared to the Austrian GmbH, and the advantages and disadvantages of the Limited Liability Company are discussed. The closing chapter will give an overview of when an LLC is an appropriate alternative corporate organisation and when it is not advisable to use it.