A limited liability company (LLC) is a legal business entity which combines the protections afforded corporate shareholders with the tax advantages and freedom of a partnership. State law governs the formation and operation of limited liability companies.
There are several types of limited liability companies. These differences impact how LLC's are taxed.
Limited liability companies are sometimes referred to as LLC corporations. However, under the law, there is no such thing as an LLC corporation.
A strategic alliance is a formal agreement between two or more entities made for the purpose of achieving a specific business goal or meeting an essential business need. During the term of the strategic alliance, each entity remains independent of the other members of the alliance.
Management of a limited liability company may be vested in members or managers as set forth in the Articles of Organization and Operating Agreement. If the management of the LLC is vested in managers, they have the exclusive authority to bind the LLC. A majority vote, as defined in the Operating Agreement, is required before action may be taken by a manager-managed LLC. In this respect, a manager-managed LLC resembles a corporation.
On the other hand, any member of a member-managed LLC may bind the company. In this regard, member-managed LLC's resemble partnerships.
It's important to seek legal advice before deciding on a corporate structure. An experienced business attorney can advice you about the advantages and disadvantages of operating as a sole proprietorship, corporations, partnership, or LLC. Additionally a business attorney can draft all of your corporate documents, ensuring that they comply with state law.