Sally Toone wants to start a new business, and hopes to attract several hundred investors to help finance its growth. She considered forming a C corporation, but wants to have
more flexibility about how the new business will be taxed. She also wants to offer
investors limited liability. Sally can satisfy her objectives by setting up a(n):
general partnership
alien corporation
S corporation.
limited liability company.

limited liability company.

Explanation:

A limited liability company features mostly in private company's. It is a business ownership structure formed by at least one person with no maximum. This structure combines elements of a partnership and a corporation. It adopts a corporation's limited liability feature while passing through its taxation to its members, just like in a partnership.

Sally can satisfy both her objectives by setting up a limited liability company LLC. An LLC does not have an upper limit on membership, while its taxation is a single layer.

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