Compared to the C corporation,the limited liability company is an attractive form of business ownership because ________.
A) a limited liability company may be more expensive to form but it has a longer life than a C corporation
B) a limited liability company allows only one owner, whereas a C corporation requires over 100 owners
C) a limited liability company provides owners with protection of their personal assets; whereas C corporation owner's personal assets are at risk
D) a limited liability company does not require the firm to hold annual meetings and it can avoid double taxation
E) a limited liability company issues stock, while in a C corporation each member's ownership is determined by the value of their capital account

Question

Quizplus · Accepted Answer

Limited Liability Companies (LLCs) offer the benefit of not requiring annual meetings and avoiding the double taxation that C corporations face, where the corporation's profits are taxed and dividends paid to shareholders are taxed again.

Compared to the C Corporation,the Limited Liability Company Is an Attractive