LLCs combine which features of a partnership with the limited liability of a corporation?

The features of Limited Liability Companies (LLCs) that combine aspects of partnerships and corporations are accurately captured in the choice of pass-through taxing and limited liability.

LLCs are designed to provide their members with liability protection similar to that of a corporation, meaning that members are generally not personally liable for the debts and obligations of the LLC. This limited liability ensures that members can protect their personal assets in case the business encounters legal issues or financial difficulties.

Additionally, LLCs typically enjoy pass-through taxation, a characteristic often associated with partnerships. This means that the business itself does not pay income taxes at the corporate level. Instead, profits and losses "pass through" directly to the individual members’ personal tax returns, allowing them to avoid double taxation while enjoying the benefits of limited liability.

Together, these two features—limited liability and pass-through taxation—make LLCs a flexible and attractive option for many business owners who seek the benefits of both corporate structure and partnership tax treatment.