Definition:

• Distinct legal entity which shares certain desirable attributes of a traditional corporation and a partnership
• Owners are referred to as members
• Members liability is limited to their investment in the LLC

Start-up:

• File articles of organization with the state, pay filing fees/expenses
• Apply for a FEIN

Types of organization:

• Managed by members: members have broad managing authority similar to a partner in a general partnership
• Managed by managers: managers authority resembles the managing authority of a partner in a general partnership, members are merely investors