Which legal form of business best protects an owner's personal assets when he or she must declare business bankruptcy?

Question

Quizplus · Accepted Answer

Corporations and Limited Liability Corporations (LLCs) provide the best protection for an owner's personal assets when declaring business bankruptcy. In both forms, the business entity is separate from the owner, meaning that the owner's personal assets are not at risk. In partnerships and sole proprietorships, the owner's personal assets can be seized to pay off business debts.

Which Legal Form of Business Best Protects an Owner's Personal