Asked by Lindsay Stavnes on May 14, 2024
Verified
As in a partnership, a limited liability company may pay no taxes-profits can be passed through to the members, who pay personal taxes on the profits.
Passed Through
A term often used in finance and taxation to describe income, losses, or tax benefits transferred from one entity to another, such as in a pass-through entity.
Limited Liability Company
A business configuration that combines the beneficial limited liability of a corporation with the pass-through taxation system of partnerships or sole proprietorships.
Taxes
A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.
- Recognize the tax advantages of an LLC and how profits and losses can be passed through to members.
Verified Answer
Learning Objectives
- Recognize the tax advantages of an LLC and how profits and losses can be passed through to members.
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