4. Forms of business organizations Aa Aa Businesses can be classified into the following forms: proprietorship, partnership, corporation, limited liability company (LLC), and limited liability partnership (LLP). Different forms of businesses have different characteristics. Which of the following characteristics belong to a limited liability company? Check all that apply. Might be an S corporation (a special case with a limited number of shareholders) Types of businesses that may adopt this form designated by states Owners with limited liability and possibly significant input into daily management of the firm You see and read about different kinds of businesses every day. The following scenarios describe two businesses. Use the description of each business to classify it as a proprietorship, partnership, corporation, or limited liability partnership and/or limited liability company (LLP/LLC). Business #1 Lafayette and his friend, Shirley, run a carpet cleaning business. They distribute the profits proportionately and report their portion of the business's profits on their individual tax returns. Business #2 Ethan and Lafayette run a law firm in downtown Phoenix. The firm has debt of $100,000, but Ethan and Lafayette will not be held personally liable for the firm's debts. This is an example of: This is an example of: An LLP/LLC A corporation A proprietorship A partnership A partnership A corporation A proprietorship An LLP/LLC