A limited liability company is similar to an S corporation, but without the special eligibility requirements.

Question

Quizplus · Accepted Answer

A limited liability company (LLC) is similar to an S corporation in terms of providing limited liability protection to its owners and allowing for pass-through taxation. However, an LLC does not have the same eligibility requirements as an S corporation, such as restrictions on the number and type of shareholders.

A Limited Liability Company Is Similar to an S Corporation