Which of the following is true of a limited liability company (LLC)?
A) It is not always subject to double taxation.
B) It is relatively difficult to set up and tough to maintain once started.
C) It does not have the option of single taxation.
D) It cannot have more than one owner.

Question

Quizplus · Accepted Answer

One of the advantages of an LLC is that it allows for pass-through taxation, avoiding double taxation. It is also relatively easy to set up and maintain compared to other business entities such as a corporation. An LLC can have more than one owner, and there is not an option for single taxation as it either has pass-through or corporate taxation depending on how it is structured.

Which of the Following Is True of a Limited Liability