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:

Answer 1

Answer:Divide the profits equally for all the members.

Step-by-step explanation:

The capital accounts should mention the allocation of each members profit share and the capital contribution. The ownership of the members can be identified with this contribution. The profit sharing depends on the percentage share of the members.

If there is any flexibility in the arrangement then the it has to be mentioned clearly in the agreement. In StartUp investors case there is no operating written agreement so the profits will be divided among the members equally. If this is done in knowledge of all the members then the losses will also be borne by them.