The main advantage for an LLC is that it ________.
A) avoids liability
B) avoids double taxation
C) avoids all taxation of income under $100,000
D) allows choice of taxation classification

Question

Quizplus · Accepted Answer

The main advantage of an LLC is that it allows the owners to choose their taxation classification. They can be taxed as a partnership, sole proprietorship, S corporation or C corporation. This allows for more flexibility in tax planning and potentially lower tax liability. While LLCs do offer some liability protection, it is not complete avoidance of liability. Avoiding all taxation under a certain income threshold is not a benefit of an LLC.

The Main Advantage for an LLC Is That It ________