Which of the Following Statements Is Incorrect About LLCs and the Check-The-Box

Multiple Choice

Which of the following statements is incorrect about LLCs and the check-the-box Regulations?

A) If an LLC with more than one owner does not make an election, the entity is taxed as a corporation.
B) All 50 states have passed laws that allow LLCs.
C) An entity with more than one owner and formed as a corporation cannot elect to be taxed as a partnership.
D) If an LLC with one owner does not make an election, the entity is taxed as a sole proprietorship.
E) An LLC with one owner can elect to be taxed as a corporation.