Question

Because title to the property of a limited liability company must be held in the name of one or more of its members, how are disputes over its ownership avoided?

1) By transferring ownership to a third party
2) By resolving disputes through arbitration
3) By requiring all members to have equal ownership
4) By holding the property title in the name of the company

Answer 1

Disputes over ownership of property in a limited liability company can be avoided by holding the property title in the name of the company. Transferring ownership to a third party or requiring equal ownership among members may not prevent disputes.

Step-by-step explanation:

Disputes over ownership of property in a limited liability company (LLC) can be avoided by holding the property title in the name of the company. This means that the company itself owns the property, rather than individual members. By doing this, disputes over ownership are minimized because the property is separate from the personal assets of the members.

Transferring ownership to a third party is not a common way to avoid disputes in an LLC. While resolving disputes through arbitration is an option, it is not directly related to how ownership is held. Requiring all members to have equal ownership is not a requirement for an LLC and may not prevent disputes.