FoodieGo, a catering company, is owned by foreign investors and local businessmen. Its earnings are equally divided among its members. It does not face the problem of double taxation as taxes are only levied on the personal income of the members. The owners of FoodieGo do not have personal liability for any debts incurred by the company. In the given scenario, FoodieGo is an example of a _____.

Question

Quizplus · Accepted Answer

FoodieGo is a limited liability company (LLC) because it offers limited liability to its owners, avoids double taxation by taxing only personal income, and has multiple owners.

FoodieGo, a Catering Company, Is Owned by Foreign Investors and Local