The owners of a limited liability company prefer:
A) being taxed like a corporation.
B) having liability exposure similar to that of a sole proprietor.
C) being taxed personally on all business income.
D) having liability exposure similar to that of a general partner.
E) being taxed like a corporation with liability like a partnership.

Question

Quizplus · Accepted Answer

The owners of a limited liability company (LLC) prefer being taxed personally on all business income because it allows them to avoid double taxation, which is a benefit of the pass-through taxation structure of an LLC.

The Owners of a Limited Liability Company Prefer