A business entity that provides each owner with limited liability while the firm is operated and taxed like a partnership is called a:
A)limited liability company.
B)general partnership.
C)limited proprietorship.
D)limited partnership.
E)corporation.

Question

Quizplus · Accepted Answer

A limited liability company (LLC) provides each owner with limited liability, meaning they are not personally liable for the debts and obligations of the business. However, the firm is still operated and taxed like a partnership, with each owner reporting their share of profits and losses on their personal tax return. This makes the LLC a popular choice for small business owners who want the liability protection of a corporation, but the flexibility of a partnership.

A Business Entity That Provides Each Owner with Limited Liability