Which of the following best describes the term "dissociation" in the context of an LLC?

Dissociation in the context of an LLC refers specifically to the withdrawal or expulsion of a member. This process marks the end of a member's association with the LLC, allowing the remaining members to continue the business without that individual. It is an important event in the lifecycle of an LLC as it impacts the governance and financial structure of the company.

When a member dissociates, it may trigger various rights and obligations, including the need for the remaining members to buy out the departing member's interest. This term is distinct from dissolution, which involves closing the entire business entity, thus emphasizing the significance of a member's departure without necessarily ending the company's operations.

In contrast, the other options describe different actions or events unrelated to the specific concept of dissociation:

• The formal agreement to dissolve a corporation pertains to the total cessation of business activities.

• A merger between two or more LLCs describes a combination of entities rather than the separation of an individual member from one.

• An increase in the number of members refers to growth within the LLC, which is the opposite of dissociation.

By understanding these nuances, one can grasp the implications of a member dissociating and how it affects the ongoing operations of an LLC.