Owners of limited liability companies enjoy flow-through treatment of income and losses.

Question

Quizplus · Accepted Answer

The owners of limited liability companies (LLCs) are typically not taxed at the company level, but rather the income and losses of the business "flow through" to the owners' individual tax returns. This means that the income is only taxed once at the individual level, providing flow-through treatment of income and losses for LLC owners.

Owners of Limited Liability Companies Enjoy Flow-Through Treatment of Income