Question

Rocks and Lawn Landscaping, LLC, is registered as a limited liability company in Illinois. Rocks and Lawn provides corporate landscape design and maintenance. During a large corporate project near Chicago, the driver of Rocks and Lawn's bulldozer lost control, went into oncoming traffic, and caused injuries to David. David wants to file a lawsuit and, after research, learns that Rocks and Lawn is owned by Dean, an Illinois resident, and Rolanda, an Indiana resident, and that Rocks and Lawn filed articles of organization in Illinois and a certificate of authority in Indiana. Would Dean and Rolanda likely be held liable for David's injuries? a. LLC members are akin to limited partners, which can be liable for business debts. b. Like a joint venture, each LLC member is equally liable for business debts. c. Like a partnership, LLC members can be personally liable for business debts. d. LLC members are similar to partners in an LLP, who can be personally liable for business debts. e. Like a corporation, LLC members' liability is limited to his or her capital investment. QUESTION 23 Rocks and Lawn Landscaping, LLC, is registered as a limited liability company in Illinois. Rocks and Lawn provides corporate landscape design and maintenance. During a large corporate project near Chicago, the driver of Rocks and Lawn's bulldozer lost control, went into oncoming traffic, and caused injuries to David. David wants to file a lawsuit and, after research, learns that Rocks and Lawn is owned by Dean, an Illinois resident, and Rolanda, an Indiana resident, and that Rocks and Lawn filed articles of organization in Illinois and a certificate of authority in Indiana. In Indiana, where Rocks and Landscaping filed its certificate of authority, what term would be used to identify Rocks and Landscaping's type of company? a. Out-of-state company b. External business c. Out-of-state operator d. Alien company e. Foreign company

Answer 1

Dean and Rolanda would not likely be personally liable for the injuries caused by Rocks and Lawn's bulldozer, as LLC members' liability is generally limited to their capital investment in the company. In Indiana, Rocks and Landscaping LLC would be known as a 'foreign company' because it is registered in another state.

Step-by-step explanation:

Regarding the liability of Dean and Rolanda for the injuries caused by the driver of Rocks and Lawn's bulldozer, LLC members' liability is typically limited to their capital investment in the company. This limited liability is one of the main features that distinguish an LLC from other business structures like partnerships or joint ventures. Therefore, members of an LLC would not usually be held personally liable for the debts of the business or actions of its employees, as liability is limited to the amount they have invested into the company, unless they have personally guaranteed the debt or engaged in wrongful acts themselves.

In Indiana, where Rocks and Landscaping filed its certificate of authority, the company would be referred to as a foreign company. This is because 'foreign' in legal and business terms refers to any business entity that is registered in a different state from where it is operating. So, for Rocks and Landscaping LLC, which is registered in Illinois but operating in Indiana, it would be an out-of-state or foreign entity within Indiana.