A limited liability company:
A)Has one or more owners,called members.
B)Is subject to double taxation.
C)Has owners called stockholders.
D)Is the same as a corporation.
E)May only have two partners.

Question

Quizplus · Accepted Answer

A limited liability company (LLC) has one or more owners, called members. They have limited personal liability for the company's debts and obligations, and the company is taxed as a partnership. Unlike corporations, LLCs are not subject to double taxation. The statement about stockholders is incorrect. The statement about only having two partners is incorrect, as a partnership can have more than two partners.

A Limited Liability Company