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1. A Limited Liability Company ("LLC") is one of the forms that can be used to conduct a business.

True False

2. A charity is not permitted to own LLC units.

True False

3. 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

4. LLCs operate like a partnership in that one person must have unlimited liability.

True False

5. A CRT cannot own shares in a partnership or LLC units.

True False

6. Having less than $100 of unrelated business income (UBI) in a CRT will not affect the tax-exempt status of the CRT.

True False

7. Partnerships have "pass-through" taxation, thus making them attractive entity options for forming a business.

True False

8. A partnership must have two or more investors while an LLC can have just a single member.

True False

9. A charity that receives active business income as owner of LLC units, must pay taxes on that income.

True False

10. The owner of an LLC is called a member.

True False

Basic Quiz - 4.8.1 LLC Taxation and Unrelated Business Income