Three Members Form an LLC in the Current Year

Multiple Choice

Three members form an LLC in the current year. Which of the following statements is incorrect?

A) The LLC's default classification under the check-the-box rules is as a partnership.
B) The LLC can elect to have its default classification ignored.
C) The LLC can elect to be taxed as a C corporation with no special tax consequences.
D) If the LLC elects to use its default classification, it can elect to change its status to being taxed as a C corporation beginning with the third tax year after the initial classification.