Question

StartUp Investors, LLC, is a limited liability company without a written operating agreement. Among the members, a dispute arises concerning the division of profits. Under most LLC statutes, the profits will be

a. distributed according to the members' proportionate shares of ownership in the firm.
b. divided equally among the members.
c. forfeited to the state.
d. reinvested in the business until the dispute is resolved.

Answer 1

B) divided equally among the members.

Step-by-step explanation:

Most states don't require limited liability companies (LLCs) to have operating agreements that regulate how profits will be distributed.

Since their LLC doesn't have an operating agreement, then the valid state law will rule how the profits will be divided. Generally speaking, but not always, state laws regarding LLCs divide profits equally among its members.