Complete Question:
Tuller wants to start a commercial trucking business and also wants to form his own limited liability company (LLC). Tuller, as the only member of the LLC, will make all relevant decisions, contribute all of the investment, and be responsible for all of the risks and rewards. Tuller's proposed LLC will be accepted by:
a. a majority of states.
b. all states, as no state requires at least two members to create an LLC.
c. no state, as at least two members are uniformly required to create an LLC.
d. a few states.
Answer:
a. a majority of states.
Step-by-step explanation:
In this scenario, Tuller wants to start a commercial trucking business and also wants to form his own limited liability company (LLC). Tuller, as the only member of the LLC, will make all relevant decisions, contribute all of the investment, and be responsible for all of the risks and rewards. Tuller's proposed LLC will be accepted by a majority of states.
A limited liability company (LLC) refers to a private company in which the owners are legally responsible for the company's debts but only to the amount of capital he or she has invested. The LLC can be referred to as a hybrid business entity that combines the limited liability-shield of a corporation with the pass-through taxation of a sole-proprietorship or partnership business.
In the United States of America, the owner of a LLC is not legally liable for the company's liability or debts.
Basically, Tuller's proposed LLC will be accepted by a majority of states because they permit a one member LLC while others only accept a two member LLC.