On Which Form Is Income from a Single Member LLC

question 45

Multiple Choice

On which form is income from a single member LLC with one corporate (C corporation) owner reported?

• A) Form 1120 used by C corporations to report their income.
• B) Form 1120S used by S corporations to report their income.
• C) Form 1040, Schedule C used by sole proprietorships to report their income.
• D) Form 1065 used by partnerships to report their income.
• E) None of the choices are correct.

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Definitions:

Limited Partnership

A partnership structure where at least one partner has unlimited liability (general partner) and one or more partners have limited liability (limited partners), restricting their losses to their investment in the partnership.

Limited Liability Partnership

A business structure where partners have limited liabilities, protecting personal assets from the debts of the business.

Sole Proprietorship

A sole proprietorship is a business owned and operated by a single individual, where there is no legal separation between the owner and the business entity.

Limited Partnership

A form of partnership consisting of one or more general partners who manage the business and assume legal debts and obligations, and one or more limited partners who are liable only up to the amount they invest.