Which of the Following Statements Regarding Limited Liability Companies Is

question 2

Multiple Choice

Which of the following statements regarding limited liability companies is false?

• A) Every member of an LLC has limited liability for the LLC's debts.
• B) An LLC with only one member is generally treated as a corporation for income tax purposes.
• C) An LLC with more than one member is generally treated as a partnership for income tax purposes.
• D) State laws do not limit the number of members or the type of entity that can be a member in an LLC.

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