Which of the following is a characteristic of limited liability companies (LLCs)?
A)They are made to pay an annual franchise tax in many states.
B)They are subject to double taxation.
C)They are required to hold timely board meetings.
D)They are required to produce a larger amount of paperwork than corporations.

Question

Quizplus · Accepted Answer

Limited liability companies (LLCs) are often required to pay an annual franchise tax in many states, which is a fee paid to the government to operate as a business entity in that state. Options B, C, and D are not characteristic of LLCs. LLCs are not subject to double taxation, which is a characteristic of corporations. LLCs are not required to hold timely board meetings, and they actually produce less paperwork than corporations.

Which of the Following Is a Characteristic of Limited Liability