The Income of a Limited Liability Company Cannot Be Taxed

question 32

True/False

The income of a limited liability company cannot be taxed to the members as though they were partners.

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Definitions:

Bailee

An individual or entity given temporary possession but not ownership of personal property by a bailor.

Bailed Property

Property given into the custody of another, termed the bailee, for a specific purpose under a contract.

Mutual Benefit

Refers to actions or policies that provide advantages or positive outcomes to all involved parties.

Reasonable Care

The standard of care that a reasonably prudent person would use in a similar situation to avoid harm to others.