For tax purposes, a limited liability company may be treated as a partnership.

Question

Quizplus · Accepted Answer

A limited liability company can choose to be treated as a partnership for tax purposes. This means that the income and expenses of the LLC are passed through to its owners (also known as members) and reported on their personal tax returns, rather than being taxed at the entity level like a corporation. However, LLCs also have the option to be taxed as a corporation if they prefer.

For Tax Purposes, a Limited Liability Company May Be Treated