Question

the features of limited liability for business owning is a principle advantage of the corporate form of the corporation true or false​

Answer 1

Answer:

Company (LLC)?

A limited liability company (LLC) is a business structure in the United States whereby the owners are not personally liable for the company's debts or liabilities. Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.1

While the limited liability feature is similar to that of a corporation, the availability of flow-through taxation to the members of an LLC is a feature of partnerships (and not an LLC).2

Understanding Limited Liability Companies (LLCs)

Limited liability companies (LLCs) are a business structure that is allowed under state statutes. The regulations surrounding LLCs vary from state to state.3 LLC owners are generally called members.4

Many states don't restrict ownership, meaning anyone can be a member including individuals, corporations, foreigners and foreign entities, and even other LLCs. Some entities, though, cannot form LLCs, including banks and insurance companies.5

An LLC is a more formal partnership arrangement that requires articles of organization to be filed with the state.6 An LLC is much easier to set up than a corporation and provides more flexibility and protection.

LLCs may elect not to pay federal taxes. Instead, profits and losses are listed on the personal tax returns of the owner(s). Or, the LLC may choose a different classification, such as a corporation.5 7 If fraud is detected or if a company hasn't met legal and reporting requirements, creditors may be able to go after the members.