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are a form of business entity which combines the attributes of partnerships with attributes of corporations. They are designed to provide the ownership and tax flexibility of partnerships with the limited liability and streamline management structure of corporations. LLCs are owned by members who finance the business much like a partnership and who operate or delegate operational authority to elected managers. The principal organizational charter is the "operating agreement," which sets out the company’s membership and operational rules. Membership interests typically are transferable only with the approval of other members after all requirements of the operational agreement are met. Profits and losses are shared (and taxed) to members in the manner provided in the operating agreement. See: Corporations, Joint Ventures, Limited Partnerships, S Corporations, Strategic Partnerships. |
