Which of the following is a characteristic of a limited-liability company (LLC)?
A)An LLC's life is terminated at any member's choice or death.
B)Each member of an LLC is liable only for his or her own actions.
C)An LLC must have more than five members.
D)The income of members from an LLC is not taxed.

Question

Quizplus · Accepted Answer

A limited-liability company (LLC) is a business structure that combines the liability protection of a corporation with the tax benefits of a partnership. Each member of an LLC is only responsible for his or her own actions, meaning that their personal assets are protected from any liabilities incurred by the company. The other choices are incorrect as an LLC can have any number of members, its life is not terminated at any member's choice or death, and the income of members is taxed on their individual tax returns.

Which of the Following Is a Characteristic of a Limited-Liability