Two CPA firms,one having 70 partners,and one having 40 partners,are planning to form a new CPA firm.They want to use a form of business organization that will give each of the 110 owners of the new firm limited liability.What are the available options to meet this goal?

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Quizplus · Accepted Answer

A limited liability partnership (LLP) or a limited liability company (LLC) are both forms of business organization that provide limited liability to its owners. An S corporation is not an option because it has restrictions on the number of shareholders and the types of shareholders allowed. A limited partnership is also not an option because it requires at least one general partner who has unlimited liability. Therefore, the best choice(s) for the new CPA firm are limited liability partnership or limited liability company.

Two CPA Firms,one Having 70 Partners,and One Having 40 Partners,are