Three Members Form an LLC in the Current Year

question 32

Multiple Choice

Three members form an LLC in the current year. Which of the following statements is incorrect?

• A) The LLC's default classification under the check- the- box rules is as a partnership.
• B) The LLC can elect to be taxed as a C corporation with no special tax consequences.
• C) If the LLC elects to use its default classification, it can elect to change its status to being taxed as a C corporation beginning with the third tax year after the initial classification.
• D) The LLC can elect to have its default classification ignored.

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Definitions:

Social Structures

Stable patterns of social relations.

State Institutions

Organizations or structures established by the government to perform functions and duties for the welfare and governance of the society.

Electronic Public Meetings

Gatherings conducted over digital platforms allowing individuals to discuss, deliberate, or make decisions on public or organizational matters.

Political Participation

The involvement of citizens in the political process, which can range from voting in elections to attending protests or engaging in civic activities.