What does “limited life” mean in the context of an LLC?

In the context of a limited liability company (LLC), "limited life" refers to the notion that the existence of the LLC may be subject to specific conditions that lead to its dissolution. This typically occurs under circumstances such as the death or withdrawal of a member or specified events outlined in the operating agreement. Unlike a corporation, which can exist indefinitely, an LLC is often intended to have a limited duration that may end upon the occurrence of defined triggering events.

While the other options mention aspects of LLC existence, they do not accurately capture the essence of "limited life." For instance, an LLC does not typically have unlimited duration and can be dissolved under specified circumstances, making the notion of limited life central to its formation and governance. Thus, the correct understanding revolves around the LLC's dissolution contingent upon specific internal or external events, aligning with the principles of "limited life."