Thursday, May 2, 2024
Specific Property Gifts

4.8.1 Basic Quiz -- LLC Taxation and Unrelated Business Income
A Limited Liability Company ("LLC") is one of the forms that can be used to conduct a business.
     True      False
A charity is not permitted to own LLC units.
     True      False
An LLC has a tax structure similar to that of a C corporation where there are two levels of tax, one tax at the LLC level and another tax to the LLC members.
     True      False
LLCs operate like a partnership in that one person must have unlimited liability.
     True      False
A CRT cannot own shares in a partnership or LLC units.
     True      False
Having less than $100 of unrelated business income (UBI) in a CRT will not affect the tax-exempt status of the CRT.
     True      False
Partnerships have "pass-through" taxation, thus making them attractive entity options for forming a business.
     True      False
A partnership must have two or more investors while an LLC can have just a single member.
     True      False
A charity that receives active business income as owner of LLC units, must pay taxes on that income.
     True      False
The owner of an LLC is called a member.
     True      False



© Copyright 1999-2024 Crescendo Interactive, Inc.