Question

one of the characteristics of the form of business ownership known as an llc is that
it is required to have at least three owners (members).
the irs collects taxes based on the llcs gross income.
the owners personal property cannot be taken to pay the businesss debts.
this kind of business can last indefinitely.

question 12
one reason a physicians practice might form a partnership as an llp is to
permit the general public to purchase licensing rights from the practice.
ensure that the business experiences unlimited liability.
protect innocent partners from the malpractice of another partner.
take advantage of higher dividend returns on shares of its stock.

Explanation:

For the first question:

• An LLC (Limited - Liability Company) can have one or more owners. So, the statement "it is required to have at least three owners (members)" is incorrect.
• LLCs are pass - through entities for tax purposes. The IRS does not collect taxes based on the LLC's gross income in the way a C - corporation is taxed. Instead, the income "passes through" to the owners' personal tax returns.
• One of the key features of an LLC is limited liability. This means the owners' personal property cannot be taken to pay the business's debts (in most cases, assuming proper formalities are followed).
• An LLC does not have the characteristic of being able to last indefinitely in the same sense as a corporation. Its existence can be affected by the death or withdrawal of members (although some states allow for continuation).

For the second question:

• A Limited Liability Partnership (LLP) is not about selling licensing rights to the general public.
• LLPs are designed to limit liability, not to have unlimited liability.
• In an LLP, one of the main reasons for formation (especially for professional practices like physicians' practices) is to protect innocent partners from the malpractice of another partner.
• LLPs are not structured like corporations with stock and dividends.

Answer:

First question: the owners' personal property cannot be taken to pay the business's debts.
Second question: protect innocent partners from the malpractice of another partner.