Which of the following is a characteristic of a limited liability partnership (LLP)?
A) A limited liability partnership issues shares of stock to shareholders.
B) Each partner is liable only for the actions under his or her control.
C) A limited liability partnership is owned by a single investor.
D) The limited liability partners are subject to "double taxation."

Question

Quizplus · Accepted Answer

A characteristic of an LLP is that each partner is liable only for the actions under his or her control. This means that one partner is not held responsible for the actions or debts of the other partners. The other options are incorrect because an LLP does not issue shares of stock to shareholders (A), is not owned by a single investor (C), and its partners are not subject to "double taxation" like those in a C Corporation (D).

Which of the Following Is a Characteristic of a Limited