Under the Internal Revenue Code, a limited liability company (LLC) exhibits all four characteristics of a corporation. Which of the following is NOT one of the four characteristics?
A) Limited liability
B) Tax-exempt status
C) Continuity of life
D) Free transferability of interests
E) Centralized management

Question

Quizplus · Accepted Answer

Tax-exempt status is not one of the four characteristics of a corporation under the Internal Revenue Code for an LLC. LLCs typically have limited liability, continuity of life, free transferability of interests, and centralized management, but they are not inherently tax-exempt.

Under the Internal Revenue Code, a Limited Liability Company (LLC)