How does an LLC (limited liability company) acquire capital? What are the obligations involved in a member's contribution of capital?
What will be an ideal response?
A member's capital contribution to an LLC may be in the form of money, personal property, real property, other tangible property, intangible property, services performed, contracts for services to be performed, promissory notes, or other agreements to contribute cash or property. A member's obligation to contribute capital is not excused by the member's death, disability, or other inability to perform. If a member cannot make the required contribution of property or services, he or she is obligated to contribute money equal to the value of the promised contribution. The LLC or any creditor who extended credit to the LLC in reliance on the promised contribution may enforce the promised obligation.
You might also like to view...
In order to obtain the protection of the business judgment rule, directors need not be free from conflicts of interest.
Answer the following statement true (T) or false (F)
There are three major forms of listening: passive listening, ________, and active listening.
Fill in the blank(s) with the appropriate word(s).
Which of the following accounts is credited by the seller when tax is collected on retail sales?
A) Accounts Payable B) Payroll Tax C) Sales Tax Payable D) Unearned Revenue
A forum-selection clause forbids parties to a contract to designate and agree to the jurisdiction of a court that otherwise might not have personal jurisdiction
Indicate whether the statement is true or false