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

1 An entity with more than one owner and formed as a corporation cannot elect to be taxed as a partnership.

2 All 50 states have passed laws that allow LLCs.

3 If a limited liability company with more than one owner does not make an election, the entity is taxed as a corporation.

4 A limited liability company with one owner can elect to be taxed as a corporation.

5 If a limited liability company with one owner does not make an election, the entity is taxed as a sole proprietorship.