A limited liability company
I. Has limited access to the privileges enjoyed by a partnership
II. Is a form of unincorporated business organization
III. Can be formed under IRC 1040 and only with the prior approval of the IRS
IV. Is a partnership surrounded by a limited liability shield
V. Combines the benefits of taxation of a corporation with the limited liability of a partnership

Question

A limited liability company 
I. Has limited access to the privileges enjoyed by a partnership
II. Is a form of unincorporated business organization
III. Can be formed under IRC 1040 and only with the prior approval of the IRS
IV. Is a partnership surrounded by a limited liability shield
V. Combines the benefits of taxation of a corporation with the limited liability of a partnership

Quizplus · Accepted Answer

A limited liability company is a form of unincorporated business organization that combines the benefits of taxation of a corporation with the limited liability of a partnership. It is a partnership surrounded by a limited liability shield. However, it does not have limited access to the privileges enjoyed by a partnership, can be formed under IRC 1040 without the prior approval of the IRS.

A Limited Liability Company