1. Every state allows an entrepreneur to form an L3C in that state (ie., each state gives the option to establish an L3C just like it gives the option to establish an LLC in that state). True or False?

2. Because an L3C formed in Vermont is a for-profit entity(i.e., it is not subject to the redistribution constraint), the L3C does not have to worry about furthering a charitable or exempt purpose. True or False?

3. An L3C is very likely have a tax-exempt organization as its single owner(i.e., the entity would be characterized as a single-member L3C). True or False?

4. Under the default tax rules, an L3C must pay tax on its income. True or False?