Pat and Nicole formed Here & There as a limited liability company.Unless the member owners elect to be treated otherwise,the Internal Revenue Service will tax the LLC as:
A)An S corporation.
B)A C corporation.
C)A non-taxable entity.
D)A joint venture.
E)A partnership.

Question

Quizplus · Accepted Answer

Unless the LLC elects to be taxed as a C corporation or S corporation, the default tax classification for an LLC with two or more members is partnership taxation. Therefore, the LLC will be taxed as a partnership by the IRS.

Pat and Nicole Formed Here & There as a Limited