Business partners Melinda and Joseph are discussing which legal structure to choose for their business. They are leaning toward creating a corporation. What is one advantage of a corporation for these partners?
(1 point)
Responses
They would have lower setup costs.
They would have lower setup costs.
They would follow fewer government regulations.
They would follow fewer government regulations.
They would have protection from personal liability.
They would have protection from personal liability.
They could set the business up without assistance from a lawyer.
my answer is They would follow fewer government regulations.
I'm sorry, but that is not the correct answer. One advantage of a corporation for Melinda and Joseph would be that they would have protection from personal liability.
The correct answer is: They would have protection from personal liability.
Creating a corporation provides the advantage of personal liability protection for the partners. This means that the partners' personal assets are generally protected from any debts or legal issues the corporation may face. This can help protect their personal finances and assets in the event of any legal disputes or financial difficulties faced by the corporation.