Question

A domestic limited liability company not classified as a corporation under IRS regulations is owned entirely by one individual taxpayer. Unless the taxpayer elects otherwise, the company will be taxed as:

A. A trust.
B. A partnership.
C. An S corporation.
D. A disregarded entity.

Answer 1

Option D is Correct

Step-by-step explanation:

If the owner is an individual, the LLC is taxed as a sole proprietorship, and the income and deductions are reported on Schedule C of the individual's Form 1040 federal income tax return, the LLC is a disregarded entity and is regarded as the same entity as the owner.