Can an LLC have unlimited members?

• A. No, there is a two-member limit
• B. Yes, LLCs can have unlimited members
• C. Yes, but only if it's a single-member LLC
• D. No, LLCs are limited to five members

Answer: (B)

The assertion that an LLC can have unlimited members is accurate and aligns with how limited liability companies (LLCs) are structured under most state laws. An LLC is designed to provide flexibility in both management and ownership, and there is no maximum limit to the number of members (owners) it can have. This characteristic allows businesses to grow and include as many members as necessary, making it an advantageous structure for various types of enterprises, whether small businesses or larger partnerships.

In contrast, the other options present restrictions that do not exist with LLCs. For instance, stating there is a two-member limit or a cap of five members misrepresents the key feature of LLCs, which is their ability to accommodate a wide range of membership. Single-member LLCs indeed exist, but their nature does not imply a limitation on the number of members for all types of LLC structures, as they can also be multi-member entities.