three members form an LLC in the current year. Which of the following statements is incorrect? The
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Question:
three members form an LLC in the current year. Which of the following statements is incorrect?
The LLC's default classification under the check-the-box rules is as a partnership.
The LLC can elect to have its default classification ignored.
The LLC can elect to be taxed as a C corporation with no special tax consequences.
If the LLC elects to use its default classification, it can elect to change its status to being taxed as a C corporation beginning with the third tax year after the initial classification.
Expert Answer:
C The LLC can elect to be taxed as a C corporation with no special tax consequences Although an LLC ... View the full answer
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