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

question 59

Multiple Choice

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

• A) If a limited liability company with more than one owner does not make an election, the entity is 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 ??????????????.
• E) A limited liability company with one owner can elect to be taxed as a corporation.

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Definitions:

Species

A group of living organisms consisting of similar individuals capable of exchanging genes or interbreeding to produce fertile offspring.

Arachnida

A class of joint-legged invertebrate animals in the arthropod phylum, including spiders, scorpions, ticks, and mites.

Insecta

The class of arthropods that includes insects, characterized by a three-part body, compound eyes, antennae, and, typically, two pairs of wings.

Exoskeleton

An external skeleton, such as the shell of mollusks or outer covering of arthropods; provides protection and sites of attachment for muscles. Compare with endoskeleton.