Federal income taxes are paid by ________ in a limited liability company.

Question

Quizplus · Accepted Answer

Federal income taxes for a limited liability company are paid by the members of the company, not the company itself. This is because LLCs are "pass-through" entities, meaning that the profits and losses are passed through to the individual members' personal income tax returns. Limited partners and general partners do not pay income taxes directly for the company.

Federal Income Taxes Are Paid by ________ in a Limited