Final answer:
An LLC indeed offers pass-through taxation benefits and provides liability protection to its investors but is governed by state laws. The correct answer is 2) II only.
Step-by-step explanation:
The statement about a Limited Liability Company (LLC) not offering the pass-through taxation benefits of partnerships is not true. In fact, one of the primary advantages of an LLC is that it can offer pass-through taxation, where the business itself is not taxed on its profits, but instead, profits are passed through to the individual investors' tax returns. Second, the statement that an LLC provides liability protection to its investors is true; it limits the investors' liability to their investment in the company, protecting their personal assets from being at risk if the company were to fail. Lastly, it is true that an LLC is governed by the laws of the state in which it is formed, as each state has its own specific regulations for the formation and operation of LLCs.
Therefore, the correct answer is 2) II only, which states that an LLC does offer pass-through taxation. Statement I is true, and statement III is false with regards to LLCs offering pass-through taxation benefits.