Question

Emily wants to open a chain of hair styling salons and hopes to attract investors to help finance growth. She considered forming a C corporation, but wants to have more flexibility about how the new business will be taxed. She also wants to offer investors/owners limited liability. Emily can satisfy her objectives by setting up a(n):

Answer 1

Answer: A Limited liability company

Explanation:

The best option for Emily would be to form a limited liability company, the limited liability company would: still give her a larger control of the business, have little liability on the investors and there would be no double taxing on her.

A limited liability company is a form of business owned by one or more individuals, where there is limited liability, no double taxing therefore no taxing on the company but the owner is taxed by income, income must not necessarily be shared equally among business owners.