In what type of business structure do owners have limited personal liability and the company is taxed like a partnership?

The limited liability company (LLC) is designed to provide its owners, also known as members, with limited personal liability for the debts and obligations of the business, meaning their personal assets are generally protected from business creditors. Additionally, LLCs have the flexibility of being taxed like a partnership, which allows income to pass through to the owner's personal tax return, avoiding the double taxation experienced with traditional corporations.

This combination of limited liability and pass-through taxation makes the LLC a popular choice for many entrepreneurs. It provides the legal protections of a corporation while maintaining the flexibility of taxation similar to partnerships. This structure is particularly appealing for small business owners who want to reduce their financial risk while enjoying the tax benefits of a partnership.