By far and away the most popular business organization for today is the limited liability company (“LLC”). The LLC is a fairly new business organization. It is intended to be a hybrid between a corporation and partnership. It offers all of the liability protection of a corporation, yet an LLC provides all of the tax benefits of a Subchapter S corporation without the restrictions on shareholders imposed by the IRS.
A limited liability company is formed by filing articles of organization with the Secretary of State’s office. pretty much the same process is used to set up a limited liability company as a corporation.
It is also important to have a member control agreement between the members of a limited liability company just like a shareholder agreement between shareholders of a corporation. Most of the rules pertaining to the operation of a corporation also apply to limited liability companies.