To open and operate Boo! City, a Halloween costume and paraphernalia shop, Dwayne and Erica form a business organization that combines the limited liability aspects of a corporation with the tax advantages of a partnership. Their form of business organization is

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A limited liability company (LLC) combines the limited liability aspect of a corporation with the tax advantages of a partnership, which is exactly what Dwayne and Erica are looking for in their business organization. A limited liability partnership (A) is also a possibility, but an LLC may offer more flexibility in terms of management and ownership structure. A limited partnership (B) is not the best option because it requires at least one general partner who has unlimited liability, whereas Dwayne and Erica want to protect their personal assets from business liabilities. A limited liability limited partnership (D) is a type of partnership where all partners have some degree of limited liability, but it may not provide the same tax advantages as an LLC.

To Open and Operate Boo! City, a Halloween Costume and Paraphernalia