Ask Question
10 June, 17:01

StartUp Investors, LLC, is a limited liability company without a written operating agreement. Among the members, a dispute arises concerning the division of profits. Under most LLC statutes, the profits will be

a. distributed according to the members' proportionate shares of ownership in the firm.

b. divided equally among the members.

c. forfeited to the state.

d. reinvested in the business until the dispute is resolved.

+4
Answers (1)
  1. 10 June, 17:44
    0
    B) divided equally among the members.

    Explanation:

    Most states don't require limited liability companies (LLCs) to have operating agreements that regulate how profits will be distributed.

    Since their LLC doesn't have an operating agreement, then the valid state law will rule how the profits will be divided. Generally speaking, but not always, state laws regarding LLCs divide profits equally among its members.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “StartUp Investors, LLC, is a limited liability company without a written operating agreement. Among the members, a dispute arises ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers