Property Ownership

What is a 'limited liability company' (LLC) and why is it commonly used to hold Delaware real estate?

AA public company that limits its real estate investments
BA flexible business entity that combines personal liability protection with pass-through taxation, often used to hold investment real estate✓ Correct
CA Delaware state agency that holds title to public land
DA limited liability version of a real estate partnership

Explanation

An LLC provides personal liability protection (members' personal assets are shielded from business debts and lawsuits) with pass-through taxation (income taxed at the member level, not at the entity level). These features make LLCs popular for holding investment real estate.

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