Ming is starting a business and would like to protect her personal assets. Which organizational structures should she consider? a) Corporation or limited liability company (LLC) b) Limited liability company (LLC) or partnership c) Corporation or partnership d) Sole proprietorship or partnership

Ming, looking to protect her personal assets while starting a business, should consider:

a) Corporation or limited liability company (LLC)

Both corporations and LLCs offer limited liability protection, meaning Ming's personal assets would generally be protected in case the business encounters legal issues or debt. These structures separate personal and business liabilities, safeguarding her personal wealth from business-related liabilities or obligations.

1. Corporations - A corporation is a legal entity separate from its owners, known as shareholders. This separation provides a layer of protection for personal assets. If the corporation faces legal action or incurs debt, the personal property of the shareholders is usually not at risk. Corporations come in different forms, such as C-corporations or S-corporations, each with its own tax and regulatory requirements.

2. Limited Liability Companies (LLCs)- An LLC is a hybrid structure that combines the characteristics of a corporation with those of a partnership or sole proprietorship. Like corporations, LLCs protect personal assets from business debts and claims. Additionally, LLCs offer more flexibility in management and taxation, which can be advantageous for small businesses and startups.