Chapter 4 Section 3: LLC Taxation

Question 1

Are LLC members personally liable for the obligations of the business?

Answer 1

No

Question 2

How can an LLC be taxed?

Answer 2

Usually as a partnership, but they can elect to be taxed as a corp

Question 3

Define a disregarded entity

Answer 3

A single member LLC not electing to be taxed as a corporation. Will be treated like a sole proprietorship