Determine whether each characteristic describes a general partnership (GP), limited liability company (LLC), both, or neither.
1. Must pay a business (corporate) income tax.
2. When the business cannot pay its debts, creditors can take the owners’ personal assets.
3. All owners can have management duties.
4. The owners are often referred to as members.
5. Ownership is split among two types of owners: general and limited partners.
6. Owners have limited liability.