Which is NOT a characteristic of a limited liability partnership?
A)One or more of the partners must be a general partner to whom the privilege of limited liability does not apply.
B)Prohibits the limited partners from participating in the management of the partnership.
C)Partners pay taxes on dividends distributed.
D)One or more partners have limited liability.

Question

Quizplus · Accepted Answer

Limited liability partnerships are taxed as pass-through entities, which means profits and losses flow through to the partners who report them on their individual tax returns. Partners do not pay taxes on dividends distributed, as dividends are not a common feature of limited liability partnerships. All other options are characteristics of limited liability partnerships.

Which Is NOT a Characteristic of a Limited Liability Partnership