Identify a true statement about a limited liability company (LLC).
A) A limited liability company (LLC) has a maximum of 100 stockholders.
B) A limited liability company (LLC) offers the limited personal liability associated with a corporation.
C) A limited liability company (LLC) has only one type of stock (membership interest).
D) A limited liability company (LLC) is taxed as a partnership and the stockholders are subject to double taxation.
E) A limited liability company (LLC) is liable for the negligence, irresponsibility, or similar acts committed by any partner.

Question

Quizplus · Accepted Answer

A limited liability company (LLC) offers the limited personal liability associated with a corporation. Unlike a corporation, an LLC does not have a limit on the number of owners, can have multiple types of ownership interests, and is not subject to double taxation. Additionally, an LLC is not liable for the actions of its owners or members.

Identify a True Statement About a Limited Liability Company (LLC)