Question

An llc is formed when a general partnership files a statement of qualification with the appropriate state official. true or False

Answer 1

Answer:

True

Explanation:

A LLC, or Limited Liability Company is a company that providesliability protection to those that form it, and is formed when a group of persons file articles of organization which are also known as certificate of corporation, and they have to file those documents in the secretary of state´s corporation bureau.

Answer 2

Answer:

False

Explanation:

The IRS definition is: "A limited liability company (LLC) is an entity created by a state statue".  

A LLC is a separate entity from its owners, therefore the owners have limited liability towards the company's debts or obligations. If it has only 1 owner, it is taxed like a sole proprietorship, if it has 2 or more owners it is taxed like a general partnership.

On certain occasions a LLC with several owners can choose to be taxed as S corporations or C corporations.