To Create an LLC

question 9

Multiple Choice

To create an LLC:

• A) organizers must have a charter and an operating agreement.
• B) standard forms for start-up documents are well established, widely available, and effective.
• C) a lengthy, detailed charter must be filed with the county clerk in the jurisdiction in which the LLC is being formed.
• D) the use of customized forms, although more expensive than using standard forms, is recommended since the law related to LLCs is so unsettled.

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Definitions:

Court

A court is an institution that the government sets up to settle disputes through a legal process by interpreting and applying laws.

Negotiated Settlements

Agreements reached by the parties involved in a dispute through discussion and compromise, without going to trial.

Administrative Actions

The activities carried out by government or regulatory agencies in pursuit of their authorized functions, including rule-making, adjudication, or the enforcement of a specific regulatory agenda.

Operating Costs

Expenses associated with the day-to-day functions of a business entity, excluding costs related to production.