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

Question

Quizplus · Accepted Answer

The advantage of a limited liability company compared to a corporation is that the members of a limited liability company are taxed at the individual level only. This means that the business itself is not taxed as a separate entity, which can result in lower taxes for the members. Additionally, LLCs have more flexibility in terms of management structure and require less formalities to maintain compared to corporations.

Which of the Following Is an Advantage of a Limited