Asked by Tatum Briggs on Jul 04, 2024
Verified
In the absence of a decision by the members of an LLC,any member can demand the distribution of profits prior to the dissolution of the LLC.
LLC
A limited liability company, which is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.
Distribution of Profits
The allocation of a company's earnings to its shareholders or owners, typically in the form of dividends.
Dissolution
The official termination of an entity's existence, such as a corporation or partnership, through legal processes.
- Understand the positions and legal rights of individuals in an LLC.
Verified Answer
ZK
Zybrea KnightJul 05, 2024
Final Answer :
False
Explanation :
No member of an LLC is entitled to a distribution of profits prior to the dissolution of the LLC,unless the LLC decides to make an interim distribution.
Learning Objectives
- Understand the positions and legal rights of individuals in an LLC.