Tawny wants to be involved in a business. She has lots of capital to invest and she wants to be involved in management, but does not want to be exposed to personal liability for losses the business might incur and she does not want to have to pay excessive taxes on her gains. Which form of business would be best for Tawny
a. General partnership
b. Corporation
c. Sole proprietorship
d. LLC

Question

08-11-2019
Business

contestada

Tawny wants to be involved in a business. She has lots of capital to invest and she wants to be involved in management, but does not want to be exposed to personal liability for losses the business might incur and she does not want to have to pay excessive taxes on her gains. Which form of business would be best for Tawny
a. General partnership
b. Corporation
c. Sole proprietorship
d. LLC

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Answer: D -LLC

Explanation: A limited liability company is a form of business organisation in which the liability of owners are limited to the amount invested in the business.

A LLC can be managed by the owners or by a manager.

LLC can take advantage of pass through taxation and pay less tax

A general partnership and sole proprietorship have unlimited liability

A board of directors manage a corporation.