Terry recently started a new business and is trying to decide what type of entity to form.  Terry is part-owner and is active in running the business.  What type of entity would best protect Terry, as one of the owners, from personal liability?
A. General partnership.
B. Limited liability company.
C. Joint venture.
D. Limited partnership.
Answer:B
B is corrent. Members of a limited liability company have no personal liability.
A is incorrect. General partners have unlimited personal liability.
C is incorrect. Liability for joint venturers is unlimited.
D is incorrect. If Terry is active in running the business, then he will be a general partner and have unlimited personal liability.