Sam Muller and Toby Richardson form an LLC in the state of Delaware.In the articles of organization,they specify the duration of the LLC as 25 years from the date of filing the articles of organization.Which of the following is true in this context?

Question

Quizplus · Accepted Answer

Muller and Richardson have formed a term LLC, which is an LLC with a specified date of termination. This means that the LLC will automatically dissolve after 25 years from the date of filing the articles of organization, unless the members decide to file for an extension or conversion to a different type of entity. Option A is incorrect as specifying a date of termination is sufficient and acceptable. Option B is incorrect as the LLC can only be dissolved after 25 years with the agreement of both members or as provided for in the operating agreement. Option D is incorrect as an at-will LLC has no specified date of termination or duration.

Sam Muller and Toby Richardson Form an LLC in the State