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.

---

Definitions:

Break-Even

The stage where total income matches total expenses, leading to no profit or loss.

Monthly

Pertaining to or occurring once every month.

Unit Sales

The total number of individual items or products sold by a company in a specific period.

Operating Leverage

Operating leverage is a measure of how revenue growth translates into growth in operating income, highlighting the impact of fixed costs on profitability.