Sam Muller and Toby Richardson organize an LLC (limited liability company)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 organized a valid term LLC because they have specified a duration of 25 years from the date of filing the articles of organization. This means that the LLC will automatically dissolve after 25 years, but cannot be dissolved at will before that time. Option A is incorrect because the articles of organization did specify a date of termination. Option B is incorrect because the LLC cannot be dissolved at will before the expiration of the specified term. Option D is incorrect because an at-will LLC does not have a specified term and can be dissolved at any time by the members.

Sam Muller and Toby Richardson Organize an LLC (Limited Liability