Identify Which of the Following Statements Is False

question 57

Multiple Choice

Identify which of the following statements is false.

• A)The check-the-box regulations permit an LLC to be taxed as a C corporation.
• B)Under the check-the-box regulations, an LLC that has only two members (owners)must be taxed as a partnership.
• C)A business need not be incorporated under state or federal law to be taxed as a corporation.
• D)Once an election is made to change its classification, an entity cannot change again for 60 months.

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Definitions:

Obligations

Duties or responsibilities imposed by law, contract, or social norms.

Dissolved

The process of legally ending the existence of an entity such as a corporation.

Liability Of Partners

The legal responsibility of each partner in a partnership for the debts and obligations of the business, which can be joint or several depending on the jurisdiction and partnership agreement.

Partnership Arrangement

A business structure in which two or more individuals manage and operate a business in accordance with terms and conditions set out in a partnership agreement.