Final answer:
The claim that the standard term of a limited liability company (LLC) is 30 years is false; LLC terms can be perpetual or specified within the company's operating agreement. An LLC provides liability protection for members and may continue indefinitely unless a specific duration is set or until dissolution according to state law. Th given statement is false.
Step-by-step explanation:
The statement that the standard term of a limited liability company (LLC) is 30 years is generally false. LLCs are modern business structures that have variable life spans which can be determined in the company's operating agreement.
While some states may have default rules if an operating agreement does not specify a term, these generally do not set a standard term of 30 years, and an LLC can potentially exist in perpetuity unless a specific duration is mentioned in the agreement or until the LLC is dissolved in accordance with state law. An LLC combines the liability protection of a corporation with the tax efficiencies and operational flexibility of a partnership.
The owners (members) of an LLC are not personally responsible for the debts of the business, thereby protecting their personal assets such as a home, car, or personal bank accounts. However, disadvantages include the responsibility for the actions of other members, and the need to reform the LLC if a member leaves or passes away, impacting the permanence of the business structure.