Which entity offers limited liability and avoids double taxation, while remaining flexible for members?

• A. Limited Partnership
• B. Partnership
• C. Corporation
• D. Limited Liability Company

Answer: (D)

Limited Liability Company offers limited liability, meaning owners are generally not personally responsible for business debts or lawsuits. It avoids double taxation because profits pass through to members’ individual tax returns rather than being taxed at the entity level. It also remains flexible for members because it allows either member-managed or manager-managed structures, and ownership and profit distributions can be arranged in varied ways without the rigid formalities of a corporation. This combination distinguishes it from other options: general partnerships expose owners to personal liability; limited partnerships place control and liability unevenly; corporations incur double taxation and stricter governance requirements.