Asked by
Harvey Fisher
on Dec 08, 2024
Verified
Which of the following is a difference between limited liability companies (LLCs) and S corporations?
A) LLCs are taxed as partnerships,whereas S corporations are taxed as corporations.
B) LLCs are found only in the United States,whereas S corporations are present worldwide.
C) LLCs are very simple to run,whereas S corporations are not.
D) LLCs provide limited liability to owners,whereas S corporations do not.
E) LLCs require the members to hold meetings,whereas S corporations do not.
S Corporations
A special designation for businesses that allows them to pass income, losses, deductions, and credits directly to shareholders to avoid double taxation.
- Identify the distinctions between Limited Liability Companies (LLCs) and S corporations regarding tax obligations and functional prerequisites.
- Understand the legal rights and restrictions afforded to members or owners across various business structures.
Verified Answer
AN
Learning Objectives
- Identify the distinctions between Limited Liability Companies (LLCs) and S corporations regarding tax obligations and functional prerequisites.
- Understand the legal rights and restrictions afforded to members or owners across various business structures.
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