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

question 30

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 proprietorship.
• E)A limited liability company with one owner can elect to be taxed as a corporation.

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Definitions:

Collection Of Rules

A set of guidelines or principles designed to govern behavior or procedures.

Conduct

The manner in which a person behaves, especially on a particular occasion or in a specific context.

Criminal Law

A system of laws concerned with punishment of individuals who commit crimes.

Misdemeanors

Lesser criminal acts that are punishable by fines or imprisonment for a short period, not in a high-security facility.