FALSE
A limited liability company (LLC) is not a separate tax entity like a corporation; instead, it is
what the IRS calls a \"pass-through entity,\" like a partnership or sole proprietorship. All of the
profits and losses of the LLC \"pass through\" the business to the LLC owners (called members),
who report this information on their personal tax returns.
LLC member must pay taxes on his or her whole distributive share, whether or not the LLC
actually distributes all (or any of) the money to the members.
Solution
FALSE
A limited liability company (LLC) is not a separate tax entity like a corporation; instead, it is
what the IRS calls a \"pass-through entity,\" like a partnership or sole proprietorship. All of the
profits and losses of the LLC \"pass through\" the business to the LLC owners (called members),
who report this information on their personal tax returns.
LLC member must pay taxes on his or her whole distributive share, whether or not the LLC
actually distributes all (or any of) the money to the members..
FALSEA limited liability company (LLC) is not a separate tax entit.pdf
1. FALSE
A limited liability company (LLC) is not a separate tax entity like a corporation; instead, it is
what the IRS calls a "pass-through entity," like a partnership or sole proprietorship. All of the
profits and losses of the LLC "pass through" the business to the LLC owners (called members),
who report this information on their personal tax returns.
LLC member must pay taxes on his or her whole distributive share, whether or not the LLC
actually distributes all (or any of) the money to the members.
Solution
FALSE
A limited liability company (LLC) is not a separate tax entity like a corporation; instead, it is
what the IRS calls a "pass-through entity," like a partnership or sole proprietorship. All of the
profits and losses of the LLC "pass through" the business to the LLC owners (called members),
who report this information on their personal tax returns.
LLC member must pay taxes on his or her whole distributive share, whether or not the LLC
actually distributes all (or any of) the money to the members.
