Which of the following statements is TRUE about limited liability companies (LLCs)?

A limited liability company is a business structure allowed by federal statute.

Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation or partnership, or as part of the LLC's owner's tax return.

If someone is the sole member of a domestic limited liability company (LLC), they are considered a sole proprietor even if they elect to treat the LLC as a corporation.

Owners of a limited liability company are called shareholders.