23 Corey wishes to start up a railroad reconstruction business called, Oh Susanna Railroads with his good friends Mike and Fred. In order to pursue this the business will need to secure a substantial amount of money which is far beyond their own personal assets or creditworthiness. He recently approached you asking if an LLC would be the best option for their business given that the owners of an LLC have limited liability. Which statement below would be the most accurate answer to Coreys inquiry?

While an LLC does have limited liability, given the fact that Corey specifically stated he will need to raise a lot of money, an LLC has limited capitalization methods and may be difficult to raise the required amount needed.

An LLC is the only option of a business entity that will give the owners limited liability and therefore is his only realistic option.

An LLC cannot be formed by more than one person and therefore, given the fact that he wants to go into business with his friends, it cannot be an LLC.

An LLC is the best option to achieve Coreys goals as capitalization is very simple process for LLCs.