Twenty young entrepreneurs decide they want to start a dating service; however, they do not want to be held personally liable for losses of the company. They want to avoid double taxation. Which type of business organization would best fit their needs?
A) corporation
B) LLP
C) partnership
D) closed corporation

Question

Quizplus · Accepted Answer

An LLP (Limited Liability Partnership) would best fit their needs as it offers limited liability protection to the partners, meaning that they would not be personally responsible for any losses incurred by the company. Additionally, LLPs are not subject to double taxation like corporations, as the profits and losses are passed through to the individual partners and reflected in their personal tax returns.

Twenty Young Entrepreneurs Decide They Want to Start a Dating