Question
Taylor is a member in a limited liability company called TJK LLC. The other members are Joe and Kim. Taylor contributes $25,000 to the business,
Taylor is a member in a limited liability company called "TJK LLC". The other members are Joe and Kim. Taylor contributes $25,000 to the business, Joe contributes $25,000 and Kim contributes $10,000. Shortly after the business is organized, Joe is involved in a serious automobile accident while he was acting within the course and scope of his employment with the LLC. The LLC and Joe are sued, it is determined the Joe was negligent and the court enters a 10 billion dollar judgment against Joe and the LLC. As to these facts, which statement is true?
A. | Because it is a limited liability company, Joe's liability will be limited to his investment in the business. | |
B. | Because it is a limited liability company, the judgment creditor will not be able to touch Joe's investment in the business. | |
C. | Because it is a limited liability company, Taylor and Kim's liability will be limited to their investment in the business. | |
D. | Because it is a limited liability company, the judgment creditor will not be able to touch Taylor and Kim's investment in the business. |
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