Question

Sally and Alicia currently are general partners in a business located in Atlanta, Georgia. They are content with their current tax situation but are both very uncomfortable with the unlimited liability to which they are each subjected. Which form of business entity should they consider to replace their general partnership assuming they wish to remain the only two owners of their business? Whichever organization they select, they wish to be treated equally.

Answer 1

Answer:

Limited liability company

Explanation:

A limited liability company is a distinct and legal entity. This means that the owners are not personally liable for the company's debts or liabilities. By forming a limited liability company, Sally and Alicia will protect their personal assets in the event that the company is sued. Only the company's assets will be used to settle company debts and liabilities.