Asked by Kylie Gravel on Apr 29, 2024
Verified
A limited liability company may elect to pay no federal income tax.
Federal Income Tax
A tax levied by the U.S. government on the annual earnings of individuals, corporations, trusts, and other legal entities.
Limited Liability Company
A business structure that combines the pass-through taxation of a partnership with the limited liability of a corporation.
- Comprehend the tax treatment options available for LLCs.
Verified Answer
KT
KANAPATHY TAMIL CHELVAMMay 02, 2024
Final Answer :
True
Explanation :
An LLC may elect to be taxed like a partnership or a corporation for federal income tax purposes.LLC members usually elect for the LLC to be recognized as a partnership for federal income tax purposes.As a result,the LLC pays no federal income tax.
Learning Objectives
- Comprehend the tax treatment options available for LLCs.