A court can disregard the LLC entity to hold one or more members personally liable in any of the following situations, except: _______.
A) when members fail to follow formalities.
B) when members commingle company and personal funds.
C) when members ignore the articles of organization.
D) when members vote to make substantive changes to the operating agreement.

Question

Quizplus · Accepted Answer

Members voting to make substantive changes to the operating agreement does not relate to holding members personally liable. The other options (ignoring formalities, commingling funds, ignoring articles of organization) can all be situations where a court could disregard the LLC entity and hold members personally liable.

A Court Can Disregard the LLC Entity to Hold One