Phillip and Dwight have been operating a train store together for two years.After a patron slipped on some water on the floor and was injured,they began to think about their personal liability and decided to change the business form to one that would give them the same ability to pass-through profits and shared ownership and control but with little government interference.They would most likely form a
A) limited-liability company.
B) corporation.
C) limited partnership
D) syndicate.

Question

Quizplus · Accepted Answer

A limited-liability company (LLC) is a business form that offers liability protection to its owners while also allowing for pass-through taxes and shared ownership and control. It also involves minimal government interference, making it a suitable choice for Phillip and Dwight. A corporation may also offer liability protection, but it involves more government regulations and formalities such as board of directors and shareholder meetings. A limited partnership and syndicate do not offer as much liability protection as an LLC.

Phillip and Dwight Have Been Operating a Train Store Together