LLCs Flashcards
1
Q
LLC definition
A
An LLC is a distinct legal entity formed by filing a certificate of organization with the secretary of state. Each member has equal rights in management and a majority vote is required to approve most decisions. A unanimous vote is required for extraordinary decisions.
2
Q
LLC liability and duties
A
LLC members are not personally liable for the LLC’s obligations. Members must exercise a duty of care, but even negligent decisions are protected by the business judgment rule.
