True or False: Limited liability companies offer the same type of liability protection as corporations.

Limited liability companies (LLCs) do indeed offer the same type of liability protection as corporations. This means that the owners (or members) of an LLC are generally not personally liable for the debts and obligations of the business. If the LLC incurs debt or is sued, the personal assets of the members are typically protected, which is a fundamental principle of limited liability entities. This feature encourages entrepreneurship by allowing individuals to take business risks without jeopardizing their personal financial security.

The principle of limited liability applies uniformly to both LLCs and corporations, which is why the statement is considered true. While there can be exceptions based on specific circumstances, such as personal guarantees or instances of fraud, the core function of liability protection is consistent across both business structures.