Which of the Following Statements Is Incorrect About LLCs and the Check-The-Box

question 32

Multiple Choice

Which of the following statements is incorrect about LLCs and the check-the-box Regulations?

• A) A limited liability company with one owner can elect to be taxed as a corporation.
• B) All 50 states have passed laws that allow LLCs.
• C) An entity with more than one owner and formed as a corporation cannot elect to be taxed as a partnership.
• D) If a limited liability company with one owner does not make an election, the entity is taxed as a sole proprietorship.
• E) If a limited liability company with more than one owner does not make an election, the entity is taxed as a corporation.

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Definitions:

Sensory Memory

A type of storage that holds sensory information for a few seconds or less.

Long-term Memory

A kind of memory that holds information for a long duration, from several days to many years.

Memory

The cognitive process of encoding, storing, and retrieving information, playing a vital role in learning and consciousness.

Retain Information

The ability or process of keeping or holding knowledge in the memory for later recall or use.