Which legal structure offers limited liability to its owners and is suitable for businesses planning to grow?

The correct answer is C-Corporation, as it provides limited liability protection to its owners, known as shareholders. This means that the personal assets of the shareholders are generally protected from the corporation's debts and liabilities. In a C-Corporation, the business is considered a separate legal entity, which not only limits the financial risk for its owners but also makes it easier to raise capital through the sale of stock. This structure is particularly advantageous for businesses that plan to grow, as it allows for an infinite number of shareholders and easier transferability of shares. Moreover, C-Corporations can attract investors more readily due to their more established structure and ability to operate on a larger scale.

The other legal structures do not offer the same level of limited liability or growth potential. Sole proprietorships and partnerships do not provide personal liability protection, making the owners personally responsible for the business’s debts. Limited Liability Companies (LLCs) also provide limited liability benefits; however, C-Corporations are often preferred for larger growth aspirations due to their scalability and ability to issue multiple classes of stock.