Limited Liability Companies

Summary

This practice note discusses conducting business as a limited liability company (LLC), including reasons to select an LLC as a form of ownership for a business and the formation, operation, and dissolution of a limited liability company. This note is non-jurisdictional but discusses default laws applicable in most jurisdictions, including how such default laws may be altered (in some cases) by the operating agreement of the LLC. The structure of an LLC depends on considerations including asset or business type, location and choice of jurisdiction of formation, number of members, capital contributions of members, distribution rights, control rights, and transfer rights.