Match each statement with the correct term below.
-Limited Liability Company
A)An entity with conduit tax characteristics that provides limited liability to its owners.
B)An organization of two or more persons operating a business that is not taxed.
C)A general partnership that offers limited liability to the partners.
D)An association created under the laws of a state giving owners limited liability.
E)Retains legal characteristics while obtaining tax characteristics of a conduit.
F)A partnership in which the liability of at least one partner is limited.

Question

Quizplus · Accepted Answer

A Limited Liability Company (LLC) is an entity that provides limited liability to its owners and has conduit tax characteristics, meaning it is typically not taxed at the entity level, but rather income is passed through to the owners.

Match Each Statement with the Correct Term Below