Round-Up Ranch and Smith & Jones,Accountants,are limited liability partnerships (LLPs).The major features of an LLP are that it limits the personal liability of the partners and

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LLPs allow the partnership to continue as a pass-through tax entity, which means that the partnership itself does not pay taxes on its income, but instead, the income is passed through to the individual partners and reported on their personal tax returns. This is a major advantage of LLPs over other business structures. LLP statutes vary from state to state, so choice B is incorrect. Choice C is also incorrect as LLPs can do business in multiple states. Lastly, many states have enacted LLP statutes, so choice D is also incorrect.

Round-Up Ranch and Smith & Jones,Accountants,are Limited Liability Partnerships (LLPs)