A transferor who transfers his or her distributional interest in a limited liability company is not released from liability for the debts,obligations,and liabilities of the LLC.

Question

Quizplus · Accepted Answer

This statement is true. When a transferor transfers their distributional interest in an LLC, they are still responsible for any debts, obligations, or liabilities that were incurred by the LLC prior to the transfer. This is because the transfer only changes the ownership of the interest, not the underlying obligations of the LLC.

A Transferor Who Transfers His or Her Distributional Interest in a Limited