Final answer:
Yes, there are other legal entities that offer liability protection besides corporations. One such entity is a Limited Liability Company (LLC), which provides liability protection to its owners. LLCs are taxed as flow-through entities.
Step-by-step explanation:
Yes, there are other legal entities that offer liability protection besides corporations. One such entity is a Limited Liability Company (LLC). Like corporations, LLCs provide liability protection to their owners, known as members. This means that the members' personal assets are protected from the debts and liabilities of the LLC.
LLCs, however, are not taxed as separate entities. Instead, they are considered flow-through entities for tax purposes. This means that the profits and losses of the LLC pass through to the individual members, who report them on their personal tax returns. The LLC itself does not pay taxes at the entity level.