Ingrid has asked 110 of her closest friends to invest in her company, promising them protection from personal liability. Which form of ownership would you recommend Ingrid use?

Question

Quizplus · Accepted Answer

In this scenario, Ingrid should use a limited liability company (LLC) as it provides personal liability protection to its owners (called members) while also allowing for flexibility in management and taxation. It also does not restrict the number of owners, making it suitable for Ingrid's situation where she has 110 friends investing in her company. The other options, professional corporation, nonprofit corporation, and S corporation, may not provide the same level of personal liability protection or may have limitations on the number and type of owners.

Ingrid Has Asked 110 of Her Closest Friends to Invest