If Cara, Aubrey, and Liam want to limit liability for their business debts and want to avoid double taxation, which type of business ownership would you recommend?
A) regular corporation
B) general partnership
C) sole proprietorship
D) LLP

Question

Quizplus · Accepted Answer

An LLP (Limited Liability Partnership) is a type of partnership in which all partners have limited liability for the actions of the other partners. This means that each partner is only responsible for their own actions and debts, and not for those of the other partners. Additionally, an LLP is taxed like a partnership, which means that the business's profits are only taxed once, as opposed to being taxed at both the corporate and personal level. Therefore, an LLP would be the best choice for Cara, Aubrey, and Liam as they want to limit their liability for business debts and avoid double taxation.

If Cara, Aubrey, and Liam Want to Limit Liability for Their