9. Which of the following is true about an LLC (limited liability company)? A. A
ID: 2560873 • Letter: 9
Question
9. Which of the following is true about an LLC (limited liability company)? A. An LLC is always taxed like a partnership. B. An LLC must have at least two members C. An LLC is always treated like a corporation for tax purposes D. An LLC's limited liability is similar to a corporation's E. All of these choices are false. 9. Which of the following is true about an LLC (limited liability company)? A. An LLC is always taxed like a partnership. B. An LLC must have at least two members C. An LLC is always treated like a corporation for tax purposes D. An LLC's limited liability is similar to a corporation's E. All of these choices are false. A. An LLC is always taxed like a partnership. B. An LLC must have at least two members C. An LLC is always treated like a corporation for tax purposes D. An LLC's limited liability is similar to a corporation's E. All of these choices are false.Explanation / Answer
D.An LLC's limited liability is similar to a corporation's.
(A single member LLC may be taxed as a sole proprietor, so it cannot be said that an LLC is always taxed like a partnership or a corporation for tax purposes).
(A single member LLC does not have two members, so B is false)
(The special feature of LLC is that the liability of members is limited, just as that of members of a corporation).
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