Some States Recognize LLCs but Do Not Permit Partnership Taxation

question 38

True/False

Some states recognize LLCs but do not permit partnership taxation at the state level.

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Definitions:

Strategic Alliance

A partnership where two or more companies work together to achieve objectives that are mutually beneficial.

Debentures

A type of debt instrument not secured by physical assets or collateral, issued by companies to raise capital.

Bonds

Financial instruments representing a loan made by an investor to a borrower, typically a corporation or governmental entity.

Liens

A legal claim or right against a property as security for a debt or loan.