Dana is a member of Earthground Coffee, LLC, a limited liability company. Dana is liable for Earthground's debts

Question

Quizplus · Accepted Answer

Members of a limited liability company are typically only liable for the debts and obligations of the company to the extent of their investment in the business. This is one of the primary benefits of operating a business as an LLC, as it limits the personal liability of the individual members. Option A is incorrect because liability is not generally based on the proportion of members, but rather the extent of individual investment. Option C is also incorrect because profit is not typically considered in determining liability. Option D is incorrect because, as stated, members are typically only liable to the extent of their investment, not for the full extent of the company's debts.

Dana Is a Member of Earthground Coffee, LLC, a Limited