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2 March, 17:30

Daniel and Ian run a law firm in downtown Phoenix. The firm has debt of $100,000, but Daniel and Ian will not be held personally liable for the firm's debts. The business organization is the type that requires Daniel and Ian to report all business-related income on their personal tax returns. This is an example of:

O A corporation

O A proprietorship

O A partnership

O An LLP/LLC

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  1. 2 March, 17:58
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    An LLP/LLC

    Explanation:

    This is an example of an LLP/LLC (limited liability company). Daniel and Dan are not liable for any debts the company may have. However, they need to report tax on their income incurring from that business.

    Although these businesses are not big as a corporation, they do have structured business operating and proper documentation.
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