Which of the Following Statements Is Incorrect About LLCs and the Check-The-Box

question 30

Multiple Choice

Which of the following statements is incorrect about LLCs and the check-the-box Regulations?

• A)If a limited liability company with more than one owner does not make an election, the entity is taxed as a corporation.
• B)All 50 states have passed laws that allow LLCs.
• C)An entity with more than one owner and formed as a corporation cannot elect to be taxed as a partnership.
• D)If a limited liability company with one owner does not make an election, the entity is taxed as a sole proprietorship.
• E)A limited liability company with one owner can elect to be taxed as a corporation.

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Definitions:

Negotiated Compromise

A resolution achieved by discussion and adjustment of conflicting points of view, where both parties make concessions.

Long-Term Resolution

The process of resolving complex issues or disputes with solutions that are viable over an extended period of time.

Cooperative Conflict

A situation where individuals or groups work together towards mutual resolution of a conflict, emphasizing problem-solving and achieving beneficial outcomes for all parties involved.

Win-Win Attitude

A mindset focused on finding solutions or negotiations that benefit all parties involved, aiming for mutual satisfaction.