Which of the following is/are correct with respect to limited liability companies (LLCs)?
I.An advantage of an LLC when compared to a regular corporation is the ability to pass through tax attributes to owners.
II.A disadvantage of a general partnership when compared with an LLC is the inability of owners to have limited liability.

Question

Which of the following is/are correct with respect to limited liability companies (LLCs)?
I.An advantage of an LLC when compared to a regular corporation is the ability to pass through tax attributes to owners.
II.A disadvantage of a general partnership when compared with an LLC is the inability of owners to have limited liability.
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Quizplus · Accepted Answer

Statement I is correct in that one of the advantages of an LLC is the ability to pass through tax attributes to owners, meaning that the business's income is only taxed at the individual owner's personal income tax rate. Statement II is also correct in that a general partnership does not provide limited liability for its owners, whereas an LLC does. Therefore, both statements are correct.

Which of the Following Is/are Correct with Respect to Limited