Under the "Check-The-Box" Treasury Regulations,an LLC with More Than One

question 57

True/False

Under the "check-the-box" Treasury Regulations,an LLC with more than one member is treated as a partnership unless the LLC affirmatively elects to be classified as a corporation.

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Definitions:

Business Activity

Any action undertaken by individuals or companies involving the production, distribution, or sale of goods and services.

Principals

In a commercial context, the parties who enter into a contract or agreement, authorizing agents to act on their behalf in transactions.

Contracts

Legally binding agreements between two or more parties that create mutual obligations enforceable by law.

Actual Authority

The specific power given to an agent by a principal, derived from their agreement and can be express or implied based on their actions.