Your client Sal has heard that an advantage of forming an LLC is that profits are not taxed. Regarding Sal's opinion, which of the following is the correct tax treatment? LLC members are taxed only if the LLC distributes cash or property to members LLC members are taxes as LLC earnings are allocated to them at year-ed whether they receive a distribution or not LLC members are taxed only when they file an election with the IRS to be taxed on undistributed retained earnings LLC members are taxed only when they sell their shares at a gain None of the above answers are correct Your new clients Kal and Kaley wish to form a business to market bitcoins. Kal will be a 90% owner and Kaley a 10% owner. Kaley will be the brains behind the operation while Kal will put up much of the initial investment capital. To compensate Kaley and provide a return for Kal, they agree on a distribution of profits 100% to Kaley until she recovers her initial investment and then a 90% / 10% split between Kal and Kaley of all profits. Any losses will be distributed only to Kal. Assuming this profit distribution structure meets the substantial economic effect requirements in the tax law, will be permitted for tax purposes in which of the following entity types? s Corporation C Corporation Limited Partnership (LP) Limited Liability Company (LLC) LP or LLC S Corporation or C Corporation