Question

____________are companies that are similar to S Corporations but are not restricted with similar eligibility requirements

Select one:
a. Sole proprietorship
b. limited partnership
c. limited liability companies
d. franchises

Answer 1

Limited Liability Companies (LLCs) are companies that are similar to S Corporations but have different eligibility requirements. LLCs provide limited liability protection to their owners.

Step-by-step explanation:

Limited Liability Companies (LLCs) are companies that are similar to S Corporations but are not restricted with similar eligibility requirements. Like S Corporations, LLCs provide limited liability protection to their owners, meaning that the owners' personal assets are generally protected from the company's debts and obligations. However, LLCs do not have the same restrictions on ownership and are not subject to the same eligibility requirements as S Corporations. For example, LLCs can have an unlimited number of shareholders and can have foreign individuals or entities as owners.