Which of the following is true of the dissolution of a limited liability company (LLC)?
A) The remaining members cannot avoid liquidation even by unanimously agreeing to continue the business operations.
B) Dissolution can only be caused by bankruptcy.
C) An LLC must be set up so that it can be easily dissolved.
D) The act of dissolution terminates an LLC's business.

Question

Quizplus · Accepted Answer

States frequently require limited liability companies to have a stated duration (generally no more than 30 years). Further, the LLC must be set up so that it can be easily dissolved. Otherwise it will not qualify for the single tax treatment available to partnerships under the federal tax laws.

Which of the Following Is True of the Dissolution of a Limited