The advantages of forming a limited liability company include

Question

Quizplus · Accepted Answer

The best choice is C because forming a limited liability company provides limited liability for its members, meaning their personal assets are protected in case of lawsuits or debts. Option A (Double taxation) is not an advantage of forming an LLC, as LLCs are pass-through entities that do not face double taxation of profits. Option B (The ability to raise capital on a national securities exchange) is not directly related to forming an LLC but rather becoming a publicly-traded company, which involves a separate process. The only correct option is limited liability for members. Double taxation is a disadvantage of forming a C corporation, not an advantage of forming an LLC. The ability to raise capital on a national securities exchange is not a specific advantage of forming an LLC, as this can also be achieved through other business structures such as corporations or partnerships.

The Advantages of Forming a Limited Liability Company Include