Which of the following is true about limited liability companies?

Question

Quizplus · Accepted Answer

Limited liability companies (LLCs) are a type of business structure in which owners have limited personal liability for the company's debts and obligations. One advantage of an LLC is that owners can choose how they want the business to be taxed - as a partnership, S corporation, or C corporation. This flexibility allows owners to choose the most advantageous tax treatment for their specific circumstances. Option A is incorrect as all owners in an LLC have limited liability. Option B is incorrect as specific steps are required to form an LLC. Option D is incorrect as owners in an LLC are called members. Option E is incorrect as LLCs can have centralized management by a few members, though this is not required.

Which of the Following Is True About Limited Liability Companies