Emily wants to open a chain of hair styling salons and hopes to attract investors to help finance growth.She considered forming a C corporation,but wants to have more flexibility about how the new business will be taxed.She also wants to offer investors/owners limited liability.Emily can satisfy her objectives by setting up an):
A)Limited liability company.
B)S corporation.
C)Alien corporation.
D)General partnership.

Question

Quizplus · Accepted Answer

A limited liability company (LLC) offers the benefits of limited liability for its owners/investors, while also providing flexibility in taxation options. Unlike a C corporation, which is taxed as a separate entity, an LLC can choose to be taxed as a partnership or a corporation. Additionally, an LLC offers more flexibility in ownership structure and management compared to an S corporation. Therefore, an LLC is the best choice for Emily's objectives.

Emily Wants to Open a Chain of Hair Styling Salons