LLCs may choose to be taxed as a pass-through entity or may elect to be taxed as a corporation.

Name: LLCs may choose to be taxed as a pass-through entity or may elect to be taxed as a corporation.
Brand: Quizplus
Rating: 4.9 (57 reviews)

Question

Quizplus · Accepted Answer

This is true as LLCs have the flexibility to choose their tax classification and can elect to be taxed as either a pass-through entity (sole proprietorship, partnership, or S corporation) or a corporation (C corporation or S corporation).

LLCs May Choose to Be Taxed as a Pass-Through Entity