Question: The primary difference between the taxation of a limited liability company and a C corporation is: Group of answer choices A limited liability company may be treated as a tax pass-through entity while a C corporation must pay taxes at the corporate level. There is no difference. The limited liability company must pay taxes at the company level while the C corporation may be treated as a tax pass-through entity. The limited liability company must pay taxes on its income before distributing the remainder on to its members while the C corporation must pay taxes on its income twice before distributing the remainder on to its sharehholders.