Which of the following is TRUE of a limited liability company?
A) A limited liability company is not obligated to file the articles of organization with the state.
B) The owners of a limited liability company are personally liable for the business's debts.
C) A limited liability company can elect not to pay business income tax.
D) The owners of a limited liability company cannot participate actively in management of the business.

Question

Quizplus · Accepted Answer

A limited liability company can elect to be taxed as a partnership, not paying federal income taxes at the business level. The remaining options are incorrect because an LLC must file articles of organization, the owners are not personally liable for the business's debts, and they can participate in managing the business.

Which of the Following Is TRUE of a Limited Liability