A limited liability company:
A)is a hybrid between a sole proprietorship and a partnership.
B)prefers its profits be taxed as personal income to its owners.
C)that meets the IRS criteria to be an LLC will be taxed like a corporation.
D)provides limited liability for some, but not all, of its owners.
E)cannot be created for professional service firms, such as accountants and attorneys.

Question

Quizplus · Accepted Answer

A limited liability company (LLC) typically prefers its profits to be taxed as personal income to its owners, allowing them to avoid double taxation.

A Limited Liability Company