Question

Paradigm Media is a company run by a group of new media professionals. The owners of the company do not have any personal liability and file taxes only on their individual tax returns.

Answer 1

Answer:

Limited liability partnership (LLP) / limited liability company (LLC)

Explanation:

Limited liability partnership and limited liability companies work very similarly and their main characteristics are:

1. they are separate legal entities, this means that their owners are separate from them.
2. since they are separate legal entities, the owners have limited liability
3. they are not taxed directly, they act as pass through entities and their owner's pay income taxes
4. they both need to be incorporated by the state government as distinct legal entities