Which of the following is a disadvantage of a limited liability company?
A) Because profits are taxed only at the shareholder level, there is no double taxation.
B) The number of shareholders is unlimited.
C) The number of members, tax issues, and implementation is flexible.
D) Tax accounting can be complicated.
E) limited liability.

Question

Quizplus · Accepted Answer

Tax accounting can be complicated for a limited liability company, which can be a disadvantage for those who may not have the resources or knowledge to handle it effectively. However, the other options listed are advantages of an LLC.

Which of the Following Is a Disadvantage of a Limited