MANAGEMENT

Detailed explanation-1: -With an LLC, income is only taxed at an individual member level, rather than at the company level. If the company chooses to be taxed as a partnership, its income can be allocated across members in forms other than ownership percentage. Members agree upon this in the operating agreement.

Detailed explanation-2: -The correct choice is Option A. Members are not individually accountable for the debts of the entity. Explanation: A limited liability company (LLC) is defined as an entity that has the combination of the features of a company and a partnership or one person entity.

Detailed explanation-3: -A limited liability company (LLC) is a business entity that prevents individuals from being liable for the company’s financial losses and debt liabilities. In the event of legal action or business failure, liability is assumed by the company rather than its constituent partners or shareholders.

Detailed explanation-4: -In a limited liability company or partnership, business partners are only liable for the amount of money they have put into the company. In an unlimited liability company, the owner is inextricable from the business and is personally accountable for the company’s liabilities.

Detailed explanation-5: -In the general partnership, the limited liability partnership, the limited liability limited partnership and the limited partnership, profits and losses are passed through to the partners as specified in the partnership agreement. If left unspecified, profits and losses are shared equally among the partners.