Which of the following, if true about the owners' plan for the new business, weakens the case that it should be registered as an LLC?
A) They want the company to maintain its current membership.
B) They do not want to be liable for the company's debts.
C) They want the company's funding to come from shareholders.
D) They want to set the management details in advance.
E) They want the company to be registered both federally and with the state.
Answer: C
Explanation: C) An LLC will not have shareholders because it cannot issue stock.
An LLC can set its membership details in an operating agreement (Choice A), and members do have liability protection (Choice B). An LLC can specify management details in its articles of organization or an operating agreement (Choice D), and it registers with both federal and state authorities (Choice E).
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Indicate whether the statement is true or false