Question

Why would sole proprietors organize their businesses as LLC?

A Group of answer choices

B To hire better managers

C To reduce their financial liability

D To increase the risk their business faces

E To avoid double taxation

Answer 1

A. Groups of answer choices
———

LLCs have become very popular because they provide the flexibility, informality and tax attributes of a partnership or sole proprietorship, and the limited liability of a corporation. To form an LLC, one or more people must file articles of organization with their state's business filing office.