Which of the following statements is TRUE for a limited liability partnership?
A)The partnership pays no federal income taxes.
B)Only the limited partners pay federal income taxes on their shares of the partnership's profits.
C)Only the general partner pays federal income taxes on his or her share of the partnership's profits.
D)Only the members pay federal income taxes on their shares of the partnership's profits.

Question

Quizplus · Accepted Answer

Limited liability partnerships (LLPs) do not pay federal income taxes directly; instead, the profits pass through to the partners, who then report the income on their personal tax returns.

Which of the Following Statements Is TRUE for a Limited