Asked by Maurice Edwards on Jun 01, 2024
Verified
Which of the following is not a characteristic of an LLC?
A) It may sue and be sued in its own name.
B) It must be taxed as a partnership.
C) It can buy,hold,and sell property.
D) It can make contracts and incur liabilities.
LLC
A Limited Liability Company is a U.S. business entity that merges the tax benefits of a partnership or sole proprietorship with the corporation's advantage of limited liability.
Partnership Taxation
The tax rules and regulations that apply to the income, deductions, and credits of a partnership and how they are reported to the partners.
- Ascertain the obligations and privileges of associates in a Limited Liability Company, emphasizing elements of personal debt liability and financial contributions.
Verified Answer
CF
Clandistine FurtiveJun 03, 2024
Final Answer :
B
Explanation :
Once formed,an LLC may have perpetual existence and is an entity separate from its members.It may sue and be sued in its own name.It can buy,hold,and sell property.It can make contracts and incur liabilities.Additionally,an LLC can be taxed either as a partnership or as a corporation.
Learning Objectives
- Ascertain the obligations and privileges of associates in a Limited Liability Company, emphasizing elements of personal debt liability and financial contributions.