Jeremy and three friends began making and selling snowboards from Jeremy's garage five years ago. They are so successful now that they have a factory with many employees, and they have decided to restructure the company
They are going to sell stock, but they will continue to be taxed at a lesser rate than the corporate income tax. What kind of company will they be?
A) a sole proprietorship
B) a master limited partnership
C) a limited liability partnership
D) a limited liability company
E) a C corporation
Answer: B
Explanation: B) In a master limited partnership, the partnership acts like a corporation, selling stock on a stock exchange, but it is taxed like a partnership, paying a lesser rate than the corporate income tax.
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Indicate whether the statement is true or false.