Which of the following is NOT an essential characteristic of a limited liability company (LLC)?
A)The LLC can elect to be taxed as a partnership or a corporation.
B)Members' ownership interest is completely and freely transferable.
C)Members have limited liability for the obligations of the LLC.
D)The bankruptcy of one member does not dissolve the LLC.

Question

Quizplus · Accepted Answer

There is limited free transferability of the LLC members' ownership interests.Transfer of a membership interest entitles the transferee to receive only the member's distributions from the LLC,unless all members or the LLC agreement permits the transferee to become a member.

Which of the Following Is NOT an Essential Characteristic of a Limited