Question of the Week

Ronnie has just created her own publishing company and, as the sole owner, she wants to protect her personal assets in a simple business structure. Which of the following would be an appropriate choice?

A) Limited liability company
B) Sole proprietorship
C) Corporation
D) Limited partnership


Answer:

The correct answer is a.

A Limited Liability Corporation (LLC) will offer Ronnie protection for her personal assets if the company should fail. She is currently operating as a sole proprietor, with no liability protection. Ronnie does not qualify for either a limited partnership or general partnership since both require a minimum of two people. The LLC also has a more simplified business structure than a corporation and is, thus, easier to administer.