Which of the following is an advantage of a limited liability company compared to a partnership?
A)Unlike a partnership, the members of a limited liability company can participate actively in management of the business.
B)Unlike a partnership, the members of a limited liability company are not personally liable for the business's debts.
C)Unlike a partnership, the members of a limited liability company are taxed at the business level and not double-taxed.
D)Unlike a partnership, the members of a limited liability company need not file articles of organization with the state.

Question

Quizplus · Accepted Answer

One advantage of a limited liability company (LLC) compared to a partnership is that its members are not personally liable for the business's debts, meaning their personal assets are protected if the company is sued or goes bankrupt. In a partnership, all partners are personally liable for the business's debts. The other answer choices are incorrect.

Which of the Following Is an Advantage of a Limited