Asked by Tatum Briggs on Jul 04, 2024

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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.
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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.