Caleb Brown is the sole owner of a bicycle sales and repair shop from several years. Which of the following business types would limit Caleb's personal liability exposure to the entity's debts?

Question

Quizplus · Accepted Answer

A limited-liability company (LLC) is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. As the sole owner of the bicycle sales and repair shop, Caleb Brown can form an LLC to limit his personal liability for the business's debts and obligations. This means that if the business is sued or cannot pay its debts, Caleb's personal assets would not be at risk.

Caleb Brown Is the Sole Owner of a Bicycle Sales