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A three-member LLC may choose to be taxed as any of the following, EXCEPT: A) Sole...

A three-member LLC may choose to be taxed as any of the following, EXCEPT: A) Sole Proprietorship B)Partnership C) C Corporation D) S Corporation

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Answer #1

Answer: Option A [ Sole Proprietorship ]

If an LLC has two or more members, it will be taxed federally as a partnership, unless it elects to be taxed as an S corporation or C corporation.That means an LLC can be taxed as partnership,c corporation and S corporation, but it cannot be taxed as Sole Proprietorship as there exists three persons in the present LLC.Therefore a three-member LLC may choose to be taxed as any of the following except Sole Proprietorship.

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