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:

Federal Law

Legislation enacted by the national government or Congress that applies to the entire country.

Jurisdiction

The authority given to a legal body like a court to administer justice within a certain area of law or geographic territory.

Pleadings

Written statements filed with a court by parties to a legal dispute detailing their claims, defenses, and other legal arguments.

Notice

A formal communication informing someone of an action taken or to be taken, or a condition that affects legal rights or obligations.