Which Tax Classifications Can Potentially Apply to LLCs

question 58

Multiple Choice

Which tax classifications can potentially apply to LLCs?

• A)Partnership.
• B)Partnership and sole proprietorship.
• C)S corporation.
• D)C corporation.
• E)All of these choices are correct.

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Definitions:

Social Security

A government program that provides financial assistance to people with little or no income, including retirement, disability, and survivor benefits.

Regressive

A tax system where the tax rate decreases as the taxable amount increases.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Real Rate of Return

The annual percentage return realized on an investment, adjusted for changes in the price level due to inflation or other external effects.