All of the following statements concerning LLC's are incorrect except: ______.
A) Federal income tax is due on its income as an entity.
B) Income flows through to the members based on their proportionate interests in the company.
C) No filing is necessary to form a limited liability company.
D) All members enjoy unlimited liability.

Question

Quizplus · Accepted Answer

LLCs are known for their "pass-through" taxation, where income is not taxed at the company level but instead flows through to individual members and is reported on their personal tax returns. This allows for the avoidance of double taxation.

All of the Following Statements Concerning LLC's Are Incorrect Except