Which of the following statements,if any,about an LLC is false?
A)An LLC is usually taxed like a partnership.
B)"Members" of an LLC generally have limited personal liability for debts of the LLC.
C)"Members" of an LLC can participate in management of the LLC unless the member agrees not to participate.
D)An LLC can specially allocate income items,as long as the substantial economic effect rules of § 704(b)are followed.
E)None of the above statements is false.

Question

Quizplus · Accepted Answer

All of the statements are true. An LLC is usually taxed like a partnership, members have limited liability for debts of the LLC, members can participate in management unless agreed otherwise, and an LLC can specially allocate income items if the substantial economic effect rules are followed.

Which of the Following Statements,if Any,about an LLC Is False