Which of the following statements regarding an S corporation owner and an owner of an LLC are TRUE?
Creditors have the very limited recourse rights to the owners.
They may not be nonresident aliens.
They both are considered stockholders.
Both are taxable as flow-through entities.
A) II and IV.
B) I and IV.
C) I and III.
D) II and III.
Answer: B) I and IV.