What type of business entity is a business organization providing limited liability to its owners, but not taxed as a corporation, which is a cross between a sole proprietorship or partnership and a corporation, having characteristics of each?

Question

Quizplus · Accepted Answer

A limited liability company (LLC) provides limited liability to its owners, similar to a corporation, but is not taxed as a corporation. It is a flexible business entity that combines features of a sole proprietorship or partnership (pass-through taxation) with features of a corporation (limited liability). Limited partnerships and general partnerships do not provide limited liability and limited liability partnerships (LLP) are taxed as partnerships, making LLC the correct choice.

What Type of Business Entity Is a Business Organization Providing