Three friends form an LLC by contributing $40,000,$80,000,and $120,000.The LLC is designated to be member-managed.The LLC needs to sign an agreement with a supplier for conducting the business.The authority to bind the LLC to a contract with the supplier lies with ________.

Question

Quizplus · Accepted Answer

In a member-managed LLC, all members have the authority to bind the LLC to a contract. The decision-making power is shared equally among the members, and each member has an equal say in the management and operation of the LLC. Therefore, all three members have the authority to sign the agreement with the supplier.

Three Friends Form an LLC by Contributing $40,000,$80,000,and $120,000