Identify a true statement about a limited liability company (LLC).
A)A limited liability company (LLC) has a maximum of 100 stockholders (owners).
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, which means 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

Identify a true statement about a limited liability company (LLC). 
A)A limited liability company (LLC) has a maximum of 100 stockholders (owners).
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, which means 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.

Quizplus · Accepted Answer

A limited liability company (LLC) offers the limited personal liability associated with a corporation, meaning the owners are not personally responsible for the company's debts and obligations. Other options are incorrect as an LLC does not have a maximum limit of owners, can have multiple types of membership interests, is generally taxed as a partnership, and is not liable for the actions of partners.

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