Which of the following statements is incorrect about LLCs and the check-the-box Regulations?
A) A limited liability company with one owner can elect to be taxed as a corporation.
B) All 50 states have passed laws that allow LLCs.
C) An entity with more than one owner and formed as a corporation cannot elect to be taxed as a partnership.
D) If a limited liability company with one owner does not make an election, the entity is taxed as a sole proprietorship.
E) If a limited liability company with more than one owner does not make an election, the entity is taxed as a corporation.

Question

Quizplus · Accepted Answer

A limited liability company with more than one owner that does not make an election is taxed as a partnership, not a corporation.

Which of the Following Statements Is Incorrect About LLCs and the Check-The-Box