Question

select all the correct answers. which sentences describe characteristics of a limited liability corporation (llc)? the owners in the arrangement are called members. the owners are largely free from personal liability. the company is treated as a separate tax entity by law. owners are exempt from liabilities arising from wrongful acts. llcs pay their taxes through their members’ personal tax returns.

Explanation:

1. "The owners in the arrangement are called members." - True, LLC owners are members.
2. "The owners are largely free from personal liability." - True, a key feature of LLCs is limited personal liability for owners.
3. "The company is treated as a separate tax entity by law." - False, LLCs are typically pass - through entities for tax purposes (unless elected otherwise), not separate tax entities like corporations.
4. "Owners are exempt from liabilities arising from wrongful acts." - False, owners can be liable for their own wrongful acts.
5. "LLCs pay their taxes through their members’ personal tax returns." - True, LLCs are pass - through entities, so profits/losses pass to members' personal returns.

Answer:

• The owners in the arrangement are called members.
• The owners are largely free from personal liability.
• LLCs pay their taxes through their members’ personal tax returns.