Structuring Your Limited Liability Company (LLC)

You structure your own Limited Liability Company by drafting an Operating Agreement. That’s the beauty of the entity itself -- no need for three tiers of power, like the General Corporation. You dream up the ideal structure for your situation, write it up and that’s it. Your LLC Company Agreement is uniquely yours.

Most people start with a boilerplate company agreement and amend it as they want. Others start from the ground up to describe the rules of their entity. In either case, you have Freedom of Contract to set out the rules any way you want.

The simplest form of an LLC can be one of two categories, a Member Managed LLC or a Manager Managed LLC. Each is perfectly self-explanatory. The difference is found not in the filing documents, but in the Company Agreement. Changing from one type to the other is an internal matter requiring a new or amended Company Agreement. This is a very easy process, so long as all members agree.

See “101 on the LLC Operating Agreement” for specific details about structuring your own LLC.