Final answer:
False. In a limited liability company (LLC), the members have limited liability, which means their personal assets are generally protected from the company's debts and liabilities.
Step-by-step explanation:
A limited liability company (LLC) is a type of business structure where the owners, known as members, have limited liability. This means that their personal assets are generally protected from the company's debts and liabilities. If the company were to fail, the members would not risk losing their personal assets such as their home or car.
However, it's important to note that limited liability does not mean complete immunity from any liability. There are situations where members can be held personally liable for the company's obligations, such as if they engage in fraudulent or illegal activities.
In a limited liability company (LLC), it is true that every member has limited liability. This means that each member's financial liability is limited to their investment in the company. Therefore, members of an LLC are not personally responsible for the company's debts and liabilities beyond their investment in the business. This provides protection and makes it easier to raise/borrow money without risking personal assets. However, LLCs have different structures, and a limited liability partnership (LLP) may include certain exceptions where partners can be held responsible for the actions of the other partners.
A corporation is another business structure where shareholder liability is limited to the amount they have invested in the corporation. This legal separation from the company allows individuals to take entrepreneurial risks without fearing that their personal assets could be used to settle business debts. While the liability in LLCs and corporations is limited, contrasting business structures such as a general partnership or sole proprietorship expose the owners to unlimited liability where personal assets can be at risk in the event of failure or legal issues.