Which of the Following Statements, If Any, About a Multimember

question 5

Multiple Choice

Which of the following statements, if any, about a multimember LLC is false?

• A) A multimember LLC is usually taxed like a partnership.
• B) Members of an LLC generally have limited personal liability for debts of the LLC except for the managing member who has unlimited liability for LLC debts.
• C) Members of an LLC can participate in management of the LLC unless the member agrees not to participate.
• D) An LLC can specially allocate income items as long as the substantial economic effect rules of § 704b) are followed.
• E) All of these are true.