Which of the following statements, if any, about a multimember LLC is false?
A) A multimember LLC is usually taxed like a partnership.
B) Members of an LLC generally have limited personal liability for debts of the LLC except for the managing member who has unlimited liability for LLC debts.
C) Members of an LLC can participate in management of the LLC unless the member agrees not to participate.
D) An LLC can specially allocate income items as long as the substantial economic effect rules of § 704b) are followed.
E) All of these are true.

Question

Quizplus · Accepted Answer

Members of an LLC, including the managing member, generally have limited personal liability for the debts of the LLC. This limited liability is a key feature of LLCs and does not change based on management roles.

Which of the Following Statements, If Any, About a Multimember