What is the name of the business structure that provides limited liability protection and is treated as a partnership for tax purposes?

The business structure that provides limited liability protection while being treated as a partnership for tax purposes is known as a Limited Liability Partnership (LLP). An LLP is designed to combine the benefits of a corporation's limited liability features with the tax advantages of a partnership.

In an LLP, partners are not personally liable for the debts and obligations of the business, which offers a level of protection for their personal assets similar to that found in a corporation. Meanwhile, for tax purposes, an LLP is typically treated as a pass-through entity. This means that profits and losses can be reported on each partner's personal tax return, allowing partners to avoid double taxation, which is often associated with C Corporations.

The other options do not provide the same combination of limited liability and partnership taxation. A sole proprietorship does not offer liability protection, a general partnership exposes all partners to personal liability for business debts, and a C Corporation, while providing limited liability, is subject to corporate tax rates and double taxation on dividends. The LLP structure effectively satisfies the desire for limited liability while benefiting from the partnership tax treatment.