In an LLC,how are profits and losses reported?
A)on individual tax returns
B)on the corporation's tax return
C)on both the corporate and individual tax return
D)on either the corporate or individual tax return

Question

Quizplus · Accepted Answer

In an LLC, profits and losses are not taxed at the corporate level. Instead, they are passed through to the individual tax returns of the LLC's owners, depending on their ownership percentage. This is known as pass-through taxation. Therefore, the correct choice is A.

In an LLC,how Are Profits and Losses Reported