Which of the following is a characteristic of limited liability companies (LLCs)?

A key characteristic of limited liability companies (LLCs) is that they provide corporation-like protection while allowing for partnership tax benefits. This means that the owners of an LLC, known as members, are generally not personally liable for the debts and liabilities of the business, similar to shareholders in a corporation. This limited liability protects members' personal assets from business creditors.

Additionally, LLCs enjoy pass-through taxation, where profits and losses can be reported on the members' personal tax returns, thereby avoiding the double taxation often associated with corporations. This feature combines the benefits of limited liability with a more favorable tax structure, making the LLC a popular choice for small businesses and entrepreneurs.

In contrast, the other options either describe characteristics that do not apply to LLCs or misrepresent their structure. For example, unlimited personal liability for owners is typical in sole proprietorships and general partnerships but not LLCs. Regarding being publicly traded, LLCs generally are not traded publicly, as they can maintain a more private status. Lastly, LLCs have a flexible management structure, allowing members to tailor it according to their needs, rather than being constrained by rigid formalities typical in corporations.