Which of the following is considered a business entity separate from its owners?

A Limited Liability Company (LLC) is recognized as a business entity that is distinct from its owners, providing personal liability protection and other advantages. This separation means that the LLC itself can enter into contracts, own property, and be held liable for debts or lawsuits, rather than tying those liabilities directly to the personal assets of its owners (members).

In contrast, a sole proprietorship and a general partnership do not provide this separation. Both structures place personal liability for business debts and obligations directly onto the owners. In a sole proprietorship, the owner is personally responsible for all aspects of the business, while in a general partnership, all partners share this liability.

A single member LLC, while similar to an LLC in providing limited liability protection, is still a type of LLC specifically with one owner. However, the key feature of an LLC is its status as a separate entity, and in this context, it is the LLC structure as a whole (including multi-member LLCs) that is explicitly referred to as a distinct business entity separate from its owners. This distinction highlights the protection and benefits that come with forming an LLC, making it the correct choice in this scenario.