LLCs are pass-through entities for tax purposes; however,LLPs are taxed at the entity level without tax liability passing to partners other than their personal salary income if any.

Name: LLCs are pass-through entities for tax purposes; however,LLPs are taxed at the entity level without tax liability passing to partners other than their personal salary income if any.
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Question

Quizplus · Accepted Answer

The statement is incorrect. LLPs are also pass-through entities for tax purposes, similar to LLCs.

LLCs Are Pass-Through Entities for Tax Purposes; However,LLPs Are Taxed