For a limited liability company with 100 owners,
A)An election can be made to be taxed as a C corporation.
B)The entity is taxed as an S corporation.
C)An election can be made to be taxed as a partnership.
D)Only a.and c.are correct.
E)a. ,b. ,and c.are correct.

Question

Quizplus · Accepted Answer

A limited liability company (LLC) with 100 owners can choose to be taxed as either a C corporation or a partnership. If the LLC chooses to be taxed as a C corporation, it will be subject to double taxation, meaning that both the corporation and its owners will be taxed on the profits. If it chooses to be taxed as a partnership, the profits and losses will pass through to the owners' personal tax returns, avoiding double taxation. Therefore, the best choices are a and c, as they give the LLC flexibility in choosing its tax treatment based on the needs of the business and its owners.

For a Limited Liability Company with 100 Owners