When a member of the LLC dies or becomes bankrupt, the LLC necessarily dissolves.

Question

Quizplus · Accepted Answer

When a member of the LLC dies or becomes bankrupt, the LLC does not necessarily dissolve. The LLC operating agreement should specify the procedures for handling such events, such as the transfer of the member's ownership interest to another person or the dissolution and winding up of the LLC. It is important to have a well-drafted operating agreement to avoid confusion and disputes in such situations.

When a Member of the LLC Dies or Becomes Bankrupt