The earnings of a limited liability company (LLC) are only taxed once-
when they are paid out to employees in the form of wages and salaries.

Question

Quizplus · Accepted Answer

The earnings of an LLC are taxed twice- first at the company level as business income and then again at the individual level when distributed to members as dividends or profits. However, LLCs have the option to choose to be taxed as a pass-through entity, where the business itself is not taxed and the profits and losses are passed through to the members who pay taxes on their individual tax returns.

The Earnings of a Limited Liability Company (LLC) Are Only