Limited Liability Companies (LLCs) are gaining in popularity over sub-chapter S corporations because:. A. LLCs offer better liability protection to their members.
B. Sub-chapter S corporations are being phased out by the government which is promoting.
C. LLCs as they requires less paperwork on the part of the IRS.
D. Sub-chapter S corporations are being taxed at a higher rate by the IRS.
E. They are simpler when it comes to paperwork, offer some of the same tax advantages and also protect members from unlimited financial exposure.

E. They are simpler when it comes to paperwork, offer some of the same tax advantages and also protect members from unlimited financial exposure

Explanation:

Limited liability companies are set up to protect the owners from liability. The business is a seperate entity from the individual owners and their assets are not used to settle debts of the business.

This type of business is gaining more use than S corporation. S corporation in addition to having liability advantages also requires more rigid requirements to set up. They do not pay corporate tax, but rather are taxed as sole proprietorship or a partnership.

Because of the ease of setting up an LLC more people prefer it to an S corporation. It also protects owners from unlimited financial liability

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