Sunshine LLC is formed in the current year with six members. Which of the follow

Question

Sunshine LLC is formed in the current year with six members. Which of the following is a false statement about Sunshine's possible tax status under the check-the-box regulations? (A) Sunshine does not have to make a special election to be taxed as a partnership. B. If Sunshine elects to be taxed as a C corporation, the LLC is treated as having undergone a corporate formation transaction. C. Sunshine must wait 2 years after an election is filed before it can be taxed asat corporation. D. The election must be signed by every member of Sunshine or by any officer, manager, or member of Sunshine who is authorized to make the election.

Explanation / Answer

False statement is :

A. Sunshine does not have to make a special election to be taxed as a partnership.

=> Every partnership have to submit its registration to be elected to be taxed as a partnership.

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