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Limited liability companies are primarily designed to: a. spin off a wholly owned subsidiary b. provide the benefits of the corporate structure to foreign-based entities c. allow a portion of their owners to enjoy limited liability while granting the other portion of their owners control over the entity d. allow companies to reorganize themselves through the bankruptcy process e. provide limited liability while avoiding double taxation

Samantha Barber

in Business

1 answer

1 answer

Ross Pratt on February 24, 2018

The answer to the above question is option D: provide limited liability while avoiding double taxation. This is the main purpose of the limited liability companies. So, basically, in a limited liability company, or known as the LLC, the members of the company is considered to be safe from any type of risk of the debts or liabilities of the company. Given this benefit, the LLC does not pay taxes.

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