Question

Which of the following entities can be classified as a Limited Liability Company? C Corp, S Corp, sole proprietorship, General Partner, Limited Partnership, LLP?

Answer 1

Limited Liability Company:

The underlying feature of the limited liability company is that the owners of the firm get protection over the liabilities of the firm. owners are not personally responsible for the payment of firms liability.

Different Forms of Limited Liability companies :

1. C Corporation
2. S Corporation
3. Limited PArtnerships ( Limited liability for only limited partners for General partners have the unlimited liability)
4. LLP ( Limited Liability Partnership) ( Liability of the partners limited to their Contribution)

Note: Sole Proprietor and General partnerships have the Unlimited liability firms.