What is a primary characteristic of a Limited Liability Company (LLC)?

A primary characteristic of a Limited Liability Company (LLC) is that owners have limited liability protection. This means that the personal assets of the owners, also known as members, are protected from the debts and liabilities of the business. In the event of lawsuits or debts incurred by the LLC, the members typically are not personally responsible for these obligations, which shields their personal finances from business-related risks.

The protection afforded to owners is a significant advantage of forming an LLC, as it encourages entrepreneurship by allowing individuals to take risks without the fear of losing personal assets. This limited liability coverage is analogous to that of a corporation, providing a safety net for business owners.

Regarding the other choices, an LLC does not necessarily have perpetual existence as it can be dissolved under certain conditions, and it is generally not taxed as a corporation; in many cases, it can elect how it wants to be taxed. Additionally, an LLC can indeed have more than one owner, often making it a flexible structure for various types of businesses.