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, which means the business income is not taxed at the entity level and instead passes through to the individual owners to report on their personal tax returns. This can result in a lower overall tax burden for the business and its owners. However, LLCs are still required to file tax returns and pay certain taxes such as self-employment taxes.

Which of the Following Is True of a Limited Liability