Question

1. which business type combines limited liability with flexible taxation?

partnership
sole proprietorship
limited liability company (llc)
corporation

Explanation:

• Partnership: Partners have unlimited liability in general partnerships (though limited partners in limited partnerships have limited liability but taxation isn't as flexible as in LLCs).
• Sole proprietorship: The owner has unlimited liability.
• Limited Liability Company (LLC): Members have limited liability. It can choose to be taxed as a sole - proprietorship (if single - member) or as a partnership (if multi - member), providing flexible taxation.
• Corporation: Double - taxation (corporate income tax and shareholder dividend tax in case of C - corporations, though S - corporations have pass - through taxation but more restrictions than LLCs).

Answer:

Limited Liability Company (LLC)