Which of the following properly describes a difference between a partnership and an LLC? a. Partnerships pass
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Which of the following properly describes a difference between a partnership and an LLC?
a. Partnerships pass income and losses through to the partners while LLCs generally pay an entity level tax and owners pay tax on distributions.
b. Partners are often personally responsible for the debts of the partnership while LLC members are not liable for LLC debt.
c. Partnerships may have only one partner but LLCs must have more than one member.
d. The tax attributes of income in a partnership are retained when included in the partner’s income but LLC income is treated as capital income in all cases.
PartnershipA legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Related Book For
Income Tax Fundamentals 2019
ISBN: 9781337703062
37th Edition
Authors: Gerald E. Whittenburg, Steven Gill
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