Question

you need to create a legal structure for your small business. you would like some of the benefits enjoyed by large corporations, but do not want to be taxed twice. you have four partners who will be shareholders. none of you plan to sell your ownership shares to the public, but do want to be protected from business liabilities. which legal structure should you set up for your business? s - corporation limited liability company sole proprietorship c - corporation

Explanation:

S - Corporations offer limited liability like large corporations and avoid double - taxation. They are suitable for small businesses with a limited number of shareholders (less than 100 in the US) who don't plan to go public. Limited Liability Companies also offer limited liability but may have different tax and ownership rules. Sole Proprietorships have unlimited liability. C - Corporations are subject to double - taxation.

Answer:

A. S - Corporation