Which of the following is true with respect to legal formation of a business?
Any entity comprised of professionals (e.g., doctors, lawyers, architects, and accountants) may choose to form as an LLP or LLC, depending on their preference.
All legal entities result in the same taxation liability; the different structures differ only in the extent that the owners’ personal liability is impacted.
Business structures are federally-regulated, thus don’t vary from state-to-state.
It is normally relatively easy and inexpensive to convert to a C corporation from any of the pass-through entities.
