The income of a "limited liability corporation" is treated for tax purposes similarly to partnership income, and is not subject to double taxation.

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Quizplus · Accepted Answer

This is true. Limited liability corporations (LLCs) are considered pass-through entities, meaning that the profits and losses of the business are passed through to the individual members and reported on their personal tax returns. This avoids double taxation, which is a characteristic of corporations where profits are first taxed at the corporate level and then again at the individual level when distributed as dividends.

The Income of a "Limited Liability Corporation" Is Treated for Tax