John is in the planning stages of forming a business with several others. John has heard that an LLC would provide the best of both worlds, that is, partnership taxation and limited liability. But John has also heard that one must very carefully structure an LLC or the Internal Revenue Service might deny partnership taxation. Lastly, John needs to review his overall tax situation because he thinks that corporate taxation might actually be better for his particular situation. Which of the following is true?

a.Unless structured with the precisely correct provisions and characteristics, an LLC risks a determination by the Internal Revenue Service that it will be taxed in a manner different than the owners intended.

b.The Internal Revenue Service now taxes all LLCs as partnerships.

c.The LLC can choose whether it wants to be taxed as a partnership or corporation, but once this determination is made, it will apply to all owners of the LLC.

d.Each of the owners of the LLC can choose partnership or corporate tax treatment of their income from the LLC, thus John will be free to choose corporate treatment even if all the other owners choose to be taxed as owning an interest in a partnership.