An LLC has multiple owners, an individual and a grantor trust. All of the expenses and...

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Accounting

An LLC has multiple owners, an individual and a grantor trust.All of the expenses and income flow through the individual.
1) Can this be treated as a disregarded entity? Why?
2) If not, what tax forms does the LLC use? Does the trust needto file anything?

Answer & Explanation Solved by verified expert

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A Limited Liability Company LLC is business structure that provides the limited liability protection features of a corporation and the tax efficiencies and operational flexibility of a partnership Unlike shareholders in a corporation LLCs are not taxed as a separate business entity Instead all profits and losses are passed through the business to each member of the LLC LLC members report profits and losses on their personal See Answer

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An LLC has multiple owners, an individual and a grantor trust. All of the expenses and...

70.2K

Verified Solution

Question

Accounting

An LLC has multiple owners, an individual and a grantor trust.All of the expenses and income flow through the individual.
1) Can this be treated as a disregarded entity? Why?
2) If not, what tax forms does the LLC use? Does the trust needto file anything?

Answer & Explanation Solved by verified expert

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An LLC has multiple owners, an individual and a grantor trust. All of the expenses and...

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Accounting

An LLC has multiple owners, an individual and a grantor trust.All of the expenses and income flow through the individual.1) Can this be treated as a disregarded entity? Why?2) If not, what tax forms does the LLC use? Does the trust needto file anything?

Answer & Explanation Solved by verified expert

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An LLC has multiple owners, an individual and a grantor trust.All of the expenses and income flow through the individual.
1) Can this be treated as a disregarded entity? Why?
2) If not, what tax forms does the LLC use? Does the trust needto file anything?