red to create a legal stricture for your small business hometown schile of the benefits enjoyed by large corporations , but có not want to be tasted noice. Tour artners who will be shareholders. None of you plan to sell your ownership shares to the public, but do want to be protected from business liabilities. h legal structure should you set up for your business? Limited Liability Company S-Corporation Sole Proprietorship C-Corporation CertPREP PRAC TICE TESTS __ GMETRIX

## Step 1<br />The problem presents a scenario where a small business owner wants to enjoy the benefits of a large corporation, such as limited liability, but does not want to sell ownership shares to the public. The options provided are Limited Liability Company (LLC), S-Corporation, Sole Proprietorship, and C-Corporation.<br /><br />## Step 2<br />Let's analyze each option:<br /><br />### **Limited Liability Company (LLC)**<br />An LLC provides limited liability protection to its owners, which means that the owners are not personally responsible for the company's debts and liabilities. However, an LLC does not allow for the selling of ownership shares to the public.<br /><br />### **S-Corporation**<br />An S-Corporation also provides limited liability protection to its owners. Additionally, it allows for the selling of ownership shares to the public, which is not what the business owner wants.<br /><br />### **Sole Proprietorship**<br />A Sole Proprietorship does not provide limited liability protection. The owner is personally responsible for the company's debts and liabilities.<br /><br />### **C-Corporation**<br />A C-Corporation provides limited liability protection to its owners. However, it allows for the selling of ownership shares to the public, which is not what the business owner wants.<br /><br />## Step 3<br />Based on the analysis, the Limited Liability Company (LLC) is the most suitable option for the business owner. It provides limited liability protection and does not allow for the selling of ownership shares to the public.