Corporate Nature and Classification. It is decided that the organizational form for this firm should provide limited liability for the owners. The owners will include John, Mary, Paul, and some members of their respective families. Limited liability is one of the features of the corporate form. Ordinarily, however, corporate income is taxed at both the corporate level and the shareholder level. Which corporate form could the firm use to avoid this double taxation? Which other forms of business organization provide limited liability? What factors, other than liability and taxation, influence a firm's choice among these forms?