What do Limited Liability Companies (LLCs) offer that partnerships do not?

Limited Liability Companies (LLCs) provide liability protection to their owners, known as members. This means that the personal assets of the members are generally protected from the debts and liabilities of the LLC. In the case of a lawsuit or financial obligations incurred by the LLC, the members' personal property, such as their home or personal bank accounts, typically cannot be pursued for the LLC's debts. This protection is a significant advantage over partnerships, where partners may be personally liable for the debts and obligations of the business. In partnerships, each partner's personal assets may be at risk, and they are often jointly liable for the actions of the business and other partners.

The other options do not accurately represent what LLCs uniquely offer compared to partnerships. For example, shareholder dividends are typically related to corporations rather than LLCs or partnerships. Limited partners are a feature of limited partnerships, but they do not constitute the unique advantage of LLCs. Lastly, while LLCs may have more flexible ownership structures than some types of partnerships, they still have specific regulatory requirements that can govern ownership. Thus, the primary differentiator of LLCs is their liability protection feature, which is not offered in the same way within partnerships.