Some business owners prefer to operate as a limited liability company (LLC) rather than an S-corporation for the following reason:
A) unlike an S-corporations, a LLC's earnings are taxed at the personal level when paid out as dividends
B) unlike an S-corporation, stockholders in a LLC are not personally liable for company debts
C) the LLC form of organization does not have as many rules and regulations as does an S-corporation
D) unlike an S-corporation, the LLC pays corporate taxes on its earnings

Question

Quizplus · Accepted Answer

LLCs generally have fewer rules and regulations compared to S-corporations, making them more flexible and easier to manage.

Some Business Owners Prefer to Operate as a Limited Liability