Asked by Preston Heffington on May 19, 2024
Verified
Like other limited liability companies, for federal jurisdictional purposes, Rodeo Productions LLC is most likely a citizen of
A) all states in the United States.
B) every state of which its members are citizens.
C) any state in which it does business.
D) no state-an LLC is not a "citizen."
Federal Jurisdictional Purposes
The purposes for which federal law or courts have the authority to apply, hear, and decide on legal matters or disputes.
Citizenship
The status of being a recognized member of a state, with rights and duties.
- Understand the guidelines and potential outcomes of setting up and managing a business entity across various state jurisdictions, including foreign limited liability companies.
Verified Answer
MP
Mikey PatrickMay 23, 2024
Final Answer :
B
Explanation :
For federal jurisdictional purposes, a limited liability company (LLC) is considered a citizen of every state of which its members are citizens. This is because, unlike corporations, which are treated as separate legal entities with a specific citizenship, the citizenship of an LLC is determined by the citizenship of its members.
Learning Objectives
- Understand the guidelines and potential outcomes of setting up and managing a business entity across various state jurisdictions, including foreign limited liability companies.
Related questions
Under the ________ Clause,the Power to Regulate Interstate Trade Is ...
A State Law Regulating the Activities of a Foreign Corporation ...
What Is the Process That Allows Limited Liability Companies to ...
Grape Vineyards LLC, the Members of Which Include Howie and ...
A Limited Liability Company Is an Aggregate of Its Members ...