Which of the following statements is true of limited liability companies (LLCs)?
A) LLCs do not require separate tax on the earnings of the company.
B) LLCs do not pay franchise taxes in any states.
C) Banks, insurance companies, and nonprofit organizations are the most common forms of LLCs.
D) Laws are uniform for LLCs in all the states. Which of the following statements best describes a difference between C

Question

Quizplus · Accepted Answer

Limited liability companies (LLCs) do not require separate tax on the earnings of the company. Instead, the profit or loss of the LLC is passed through to the owners, who report it on their individual tax returns. The other statements are incorrect: LLCs do pay franchise taxes in some states, a wide variety of businesses can form LLCs, and laws governing LLCs vary by state.

Which of the Following Statements Is True of Limited Liability