The default tax classification for limited liability companies (LLCs) with more than one ownerand the one most LLCs chooseis the _____ option.

Question

The default tax classification for limited liability companies (LLCs) with more than one owner­and the one most LLCs choose­is the _____ option.

Quizplus · Accepted Answer

The default tax classification for LLCs with more than one owner is partnership. This is because partnerships are generally easier to operate and have fewer regulations than corporations. Additionally, partnerships offer the benefit of pass-through taxation, meaning that the partnership itself is not taxed, but rather the profits and losses flow through to the individual partners who are then taxed on their share of the income.

The Default Tax Classification for Limited Liability Companies (LLCs) with More