Question

John, Lesa, and Tabir form a limited liability company. John contributes 60 percent of the capital, and Lesa and Tabir each contribute 20 percent. Nothing is decided about how profits will be divided. John assumes that he will be entitled to 60 percent of the profits, in accordance with his contribution. Lesa and Tabir, however, assume that the profits will be divided equally. A dispute over the profits arises, and ultimately a court has to decide the issue. What law will the court apply

Answer 1

Answer:

state statutes

Explanation:

Usually, if the LLC's operating agreement didn't specify how the profit would be distributed, state statutes determine that the profits must be divided equally among members.

LLC are separate entities form their owners, they are authorized and created by the state's statutes, and they become legal entities in the state where they have their offices and operate.