John wants to start a new business and prefers to keep the paperwork simple and avoid large legal fees. Further, he does not want his personal property attached to the business. In this scenario, John should start his business as a __________.
A) corporation
B) partnership
C) limited liability corporation
D) sole proprietorship

Question

Quizplus · Accepted Answer

A limited liability corporation (LLC) is the best choice for John in this scenario. It offers the legal protection of a corporation and the tax benefits of a partnership, while also allowing for simple paperwork and avoiding large legal fees. Additionally, a LLC separates the business's legal and financial liabilities from John's personal assets, providing the personal property protection he desires. A sole proprietorship would not provide this protection, while a partnership or corporation may involve more complex paperwork and legal fees.

John Wants to Start a New Business and Prefers to Keep