New York Law (NYLE) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the New York Law Exam with our tailored quizzes. Engage with flashcards and multiple choice questions, each equipped with hints and explanations. Ace your NYLE effortlessly!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

At the time of its incorporation, how many members must an LLC have?

1
2
3
At least half the number of shareholders.

The correct answer is: 1

A Limited Liability Company (LLC) can be formed with just one member at the time of incorporation. This characteristic is one of the key features of an LLC, making it a flexible and attractive option for business owners. Unlike corporations, which may have more stringent requirements regarding the number of shareholders, the LLC structure allows for single-member formations. This provides individuals with the advantages of limited liability and pass-through taxation, without the necessity of partnering with others. While multiple-member LLCs are permitted and can offer additional benefits through shared management and investment, the law explicitly allows for the establishment of an LLC with a sole member. This flexibility is foundational in understanding how LLCs operate under New York law and is an important consideration for anyone looking to establish a business entity in the state. Thus, the response accurately reflects the legal framework for forming an LLC in New York.