What is the organizational structure of an LLC?
An LLC is owned by its members. They are analogous to partners in a partnership or shareholders in a corporation, depending on how the LLC is managed. A member will more closely resemble shareholders if the LLC utilizes a manager or managers, because then the members will not participate in management. If the LLC does not utilize managers, then the members will closely resemble partners because they will have a direct say in the decision making of the company. A member’s ownership of an LLC is represented by their “interests,” just as partners have “interest” in a partnership and shareholders have stock in a corporation.
An LLC is owned by its members. They are analogous to partners in a partnership or shareholders in a corporation, depending on how the LLC is managed. A member will more closely resemble shareholders if the LLC utilizes a manager or managers, because then the members will not participate in management. If the LLC does not utilize managers, then the members will closely resemble partners because they will have a direct say in the decision making of the company. A member’s ownership of an LLC is represented by their “interests, ” just as partners have “interest” in a partnership and shareholders have stock in a corporation.
A LLC is owned by its members. A LLC may be managed by its members (owners) or by selected a manager. If a LLC is managed by its members, it operates similar to a partnership. Each member has an equal say in the management of the LLC. If the members choose, they may elect a manager to act in a capacity similar to a corporation’s board of the affairs of the LLC. Member management, however is the normal default rule of state law.
