Which of the following statements is correct?
A) The number of owners of an LLC is not limited.
B) If the LLC has three or more corporate characteristics, it will be taxed as a C corporation.
C) An LLC can elect to be taxed as a C corporation or as a partnership.
D) Only a. and c.
E) a., b., and c. are correct.

Question

Quizplus · Accepted Answer

Option A is correct as the number of owners or members in an LLC is not limited. 
Option B is incorrect because having three or more corporate characteristics does not necessarily mean it will be taxed as a C corporation. The IRS considers different factors to determine the tax treatment of an LLC. 
Option C is correct. An LLC can choose to be taxed as a C corporation or a partnership by filing the respective tax forms. 
Option E is incorrect as option B is not entirely correct.

Which of the Following Statements Is Correct