Correct Response: B. The most significant difference between a limited liability company (LLC) and a standard corporation comes down to how they are taxed. Owners of a limited liability company are taxed like partners in a partnership; they pay taxes on their share of profit and on their personal tax returns. A standard corporation is taxed twice, once as a corporation and again as shareholders when dividends are disbursed. Both LLCs and standard corporations must follow government antitrust laws (A). Both LLCs and corporations are required to file articles of organization with the state they are associated with (C). LLCs have limited liability in the same way as corporations; the owners of the LLC are not personally responsible for the organization's debts (D).
