In states where an LLC may be organized by only one member, ________ can obtain the benefit of the limited liability shield of an LLC.

Question

Quizplus · Accepted Answer

Sole proprietors can obtain the benefit of the limited liability shield of an LLC in states where an LLC may be organized by only one member. This is because a single-member LLC is treated as a separate legal entity from its owner, which means that the owner's personal assets are protected from any liabilities incurred by the LLC. Therefore, sole proprietors who operate their businesses through a single-member LLC can limit their personal liability while retaining the tax benefits of a sole proprietorship.

In States Where an LLC May Be Organized by Only