Which one of the following characteristics applies to a limited liability company?
A)available only to firms having a single owner
B)limited liability for limited partners only
C)taxed similar to a partnership
D)taxed similar to a C corporation
E)all income generated is totally tax-free

Question

Quizplus · Accepted Answer

Limited Liability Companies (LLCs) are taxed similar to partnerships, where the income is passed through to the members and taxed at their individual tax rates, avoiding the double taxation often associated with C corporations.

Which One of the Following Characteristics Applies to a Limited