You are starting a construction business with a friend. You will each own 50% of the business, but you will get 60% of the profits. Your business partner will get the other 40%. You want to ensure that the business offers liability protection against unpaid business debts and legal liabilities. Which form of business best meets your needs?
A) partnership
B) sole proprietorship
C) LLP
D) corporation

Question

Quizplus · Accepted Answer

An LLP (Limited Liability Partnership) provides liability protection for its partners, shielding them from personal responsibility for business debts and legal liabilities, while allowing for flexible profit-sharing arrangements.

You Are Starting a Construction Business with a Friend