Yes, LLCs are a popular form for conducting business. A limited liability company provides much needed liability protection for a member of the LLC (LLC owners are called Members, Partnership owners are called Partners, and Corporation owners are called Shareholders). They are easy to setup and offer flexibility in ownership and capital structure such as multiple classes of ownership with different capital, profit, and loss percentages. Like a partnership and a S Corporation, the income of the LLC is passed down to the members to be taxed at the member level, thus there is only one level of taxation (a C corporation pays tax and then the shareholders pay taxes on the dividends). There is flexibility in how property is treated coming in or out of a LLC and in how members are paid. Income attributed to the members that are active are subject to self employment taxes and members of LLC are not considered employees and thus do not get a W-2 at year end. Instead, members must pay in their taxes on a quarterly basis, which is a big change for people used to the company taking out taxes with each paycheck.
In Tennessee, LLCs with active members pay little or no excise taxes since self employment income is exempt.