Darcy and Eigen own and operate a small-business enterprise that does not pay taxes on its profits, but distributes them to Darcy and Eigen who pay taxes on these amounts as their individual income. Darcy and Eigen's personal liability for the firm's debts and obligations is limited. This firm is

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The characteristics described in the scenario fit a limited liability company (LLC). The LLC is a hybrid entity that offers the pass-through taxation of a partnership or sole proprietorship, but with limited liability protection for its owners, similar to a corporation. This means that Darcy and Eigen are not personally responsible for the LLC's debts and liabilities beyond their investment in the company, which is a crucial advantage over a general partnership or sole proprietorship.

Darcy and Eigen Own and Operate a Small-Business Enterprise That