LLC - Professional Relationships and Liabilities: which statement is true?

• A. Members have no personal liability for their own acts.
• B. Each member is personally liable for negligent or wrongful acts committed by that member or supervised persons; not liable for negligence of other members if they did not supervise; not personally liable for contractual debts except to the extent of their contributions; governed by the professional regulatory scheme.
• C. Members are jointly and severally liable for all PLLC debts.
• D. Members are fully liable for all acts of the PLLC.

Answer: (B)

In a professional LLC, members enjoy limited protection from the entity’s debts, but they retain personal liability for their own professional acts and for acts of people they supervise. They are not personally liable for the negligence of other members if they did not supervise those acts, and their personal liability for contractual debts is limited to the amount they have contributed. The operation and conduct of the PLLC are overseen by the applicable professional regulatory framework.

This matches the best statement because it accurately describes personal liability for one’s own and supervised acts, the lack of liability for co-members’ unsupervised negligence, limited personal liability for debts, and the role of the professional regulatory scheme in governing practice.

The other descriptions misstate the liability framework: one treats members as having no personal liability for their own acts (which isn’t true), another imposes joint and several liability for all PLLC debts (not how LLCs work), and another makes members fully liable for all acts of the PLLC (also inaccurate).