Which business structure offers liability protection to its owners?

A C Corporation is designed to provide liability protection to its owners, known as shareholders. This means that the personal assets of the shareholders are protected from the debts and liabilities of the corporation. If the corporation incurs debts or is sued, the shareholders can only lose the amount they invested in the company, and their personal assets, such as their homes or personal savings, are generally not at risk.

In contrast, sole proprietorships expose the owner to unlimited personal liability for business debts. In a general partnership, all partners share personal liability for the debts and obligations of the partnership. While a limited partnership offers some liability protection, this protection primarily applies to limited partners, who are typically not involved in day-to-day operations. The general partner, however, remains fully liable for the business's debts. Thus, the structure of a C Corporation is specifically built to protect its owners from personal liability, making it the correct answer.