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

Question

Quizplus · Accepted Answer

A limited liability company (LLC) would provide the best option for Ingrid as it offers personal liability protection to its owners, known as members. This would protect Ingrid's personal assets in the event of any legal issues or debt incurred by the company. Additionally, LLCs are flexible in terms of management and taxation, allowing for various ownership structures and tax options. The other options, such as a professional or nonprofit corporation, do not offer the same level of personal liability protection and may not be suitable for Ingrid's business needs. The S corporation option also has restrictions on ownership and can only have up to 100 shareholders, which may not accommodate all of Ingrid's 110 friends.

Ingrid Has Asked 110 of Her Closest Friends to Invest