Question

An LLC an have

Select one:

a. at least three members - to break a tie vote.

b. either one member or several members.

c. one member.

d. more than one member.

Courts will pierce the LLC veil and hold member personally liable for business debt if

Select one:

a. members commingle personal and business funds.

b. members treat the LLC like a partnership.

c. all are reasons to pierce the LLC veil.

d. members fail to follow the formalities.

e. members fail to file annual paperwork.

Which of the following is not a characteristic of a limited liability company?

Select one:

a.
Owners can manage the business.

b.
It has the tx advantages of a partnership.

c.
Owners' liability is lmited to their capital contribution.

d.
Instantaneous start-up with no paperwork.

Which of the following is true?

Select one:

a. An LLC is a taxable entity.

b. An LLC can only do business in one state.

c. An LLC is a legal entity.

Which of the following is true?

Select one:

a. Winding up the business involves collecting, liquidating, and distributing the LLC's assets.

b. When an LLC dissolves, and after assets are liquidated, capital contributions are returned first.

c. Even if a member wrongfully dissociates, she may participate in the winding up of the business.

An LLC must have

Select one:

a. Nothing - no agreement is required.

b. Bylaws.

c. A Partnership Agreement.

d. An Operating Agreement.

Most LLCs are taxed

Select one:

a. as a pass-through tax entitty.

b. as a taxable entity.

Answer 1

1.Option B

An LLC is composed of one or more owner(s), called member(s), who must file articles of organization with the appropriate state authority.An LLC can be owned, in whole or in part, by corporations, partnerships, or foreign investors, and need not be "closely-held" - meaning that it may have unlimited investors.

2. Option C

In order for a Court to Pierce the Corporate Veil and hold members of LLC personally liable, it must find either that LLC is alter ego of its owners, LLC is used for illegal purpose; or LLC is used as a sham to perpetuate a fraud.The final red flag that could lead to piercing the corporate veil is the failure to follow corporate formalities.

3. Option D

A LLC requires Business Licence. Business Licence from state, country or town has to be obtained defore starting LLC as the case may be.

4. Option C

Limited liability companies, or LLCs, are treated as separate legal beings from their owners. It's this separation that provides the owners with important personal liability protection.

5. Option A

Ending an LLC’s existence as a separate legal entity is a multi-step process that involves dissolving, winding up affairs, liquidating assets, paying creditors, and more.

6. Option D

California LLCs are required to have an Operating Agreement. This agreement can be oral or written. If it’s written, the agreements—and all amendments to it—must be kept with the company’s records.Limited Liability Companies in New York must have a written Operating Agreement. This document should include provisions relating to the business of the LLC, the conduct of its affairs, and the rights, preferences, limitations, or responsibilities of its members.

7. Option A

Unlike a corporation (like a C-Corp or S-Corp), a Limited Liability Company is not a separate taxable entity. The IRS refers to LLCs as “pass-through entities,” which simply means that the tax liabilities of the company “pass through” to you and your co-owners personal income tax.