Which tax classifications can potentially apply to LLCs?
A) Partnership.
B) Partnership and sole proprietorship.
C) S corporation.
D) C corporation.
E) All of the choices are correct.

Question

Quizplus · Accepted Answer

LLCs can elect to be taxed as corporations and then they can make an S election if they satisfy the requirements for number and type of shareholder. The default tax status for LLCs with more than one member is partnership, and the default tax status for single-member LLCs with an individual owner is sole proprietorship.

Which Tax Classifications Can Potentially Apply to LLCs