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    Business Taxation Questions.

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    For a limited liability company with four owners,

    A. An election can be made to be taxed as an S corporation.
    B. The entity is taxed as a corporation.
    C. An election can be made to be taxed as a partnership.
    D. None of the above.
    E. All of the above.

    I know that they would normally be taxed as a partnership so that makes this questions somewhat confusing. Could someone clarify?
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    Which of the following is not immune from state income taxation, even if P.L. 86-272 is in effect?

    A. Sale of a factory building.
    B. Sale of office equipment that constitutes inventory to the purchaser.
    C. Sale of office equipment to be used in the taxpayer's business.
    D. All of the above are protected by P.L. 86-272 immunity provisions

    I am not understanding this question at all.

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    https://brainmass.com/business/accounting/business-taxation-questions-142496

    Solution Preview

    For your convenience, I have attached a formatted MS Word file that contains the answers, as well as the source of the answers to your questions.

    Feel free to contact me in the future, in the event that the need for help arises.

    For a limited liability company with four owners,

    A. An election can be made to be taxed as an S corporation.
    B. The entity is taxed as a corporation.
    C. An election can be made to be taxed as a partnership.
    D. None of the above.
    E. All of the above.

    Answer C - An election can be made to be taxed as a partnership.

    According to Sally Jones, author of Principles of Taxation, limited liability companies (LLCs) are formed under state law ...

    Solution Summary

    Attached a formatted MS Word file that contains definitions of a LLC, S Corporation, and tax law P.L. 86-272.

    $2.19

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