Greta is concerned about the level of debt her business has incurred, as she is responsible for its liabilities. Assuming Greta is the sole owner, how should she organize her business to protect herself from the liabilities of the entity?
Single member limited liability company or Corporation

Respuesta :

Answer:

Single member limited liability company

Explanation:

A single member limited liability company is a limited liability company that has only one owner and this type of organization allows member to be responsible for the debts only to the amount that was invested in the company.

A corporation is a type of organization that is owned by a group of people and its goal is to generate earnings for them.

According to this, Greta should organize her business as a single member limited liability company as she is the only owner and it allows her to be protected against the liabilities of her business.

Answer:

The correct answer is: Single member limited liability company.

Explanation:

Limited Liability Companies (LLC) are those where the personal assets of the owners are not considered in front of the debt of the organization. It means if the firm is found liable in a given case, the property of the owners will not be considered as part of the restitution of that fault.

Thus, as Greta is the only owner of her business and she does not want her personal assets to be affected by the operations of the business, she should register it as a single-member LLC.