Frances wants to start a new small business and is seeking advice as to which type of entity would best suit his needs. His business has a high potential for liability and therefore he wants to protect his personal assets, but he does not want to spend a lot of time, effort or money in starting the business up or continuing the management of it. Additionally, he is looking for an entity that would give him the best tax advantages. Which type of business organization would suggest?

Question

Quizplus · Accepted Answer

A Limited Liability Company (LLC) offers personal asset protection like a corporation but with less complexity in terms of setup and management. It also provides potential tax advantages, such as pass-through taxation, which can avoid the double taxation faced by corporations.

Frances Wants to Start a New Small Business and Is