LLC’s may be structured, at the option of its members, to have centralized management like a corporation. Alternatively, the management structure may be organized so that the management responsibility is shared between all the members in the LLC, as would be the case in relation to partners in a partnership structure. As in the corporate setting, every member of the LLC enjoys limited liability. This is in stark difference to partnerships where there is essentially unlimited liability for partners who participate in management.

The governing document of the LLC is the operating agreement. Because of its flexible structure, the LLC’s operating agreement may be crafted to address all types of unique situations relating to the LLC’s management and the relationship of its members.