A Limited Liability Company (LLC) is a business structure allowed by state statute. LLCs are popular because, similar to a corporation, owners have limited personal liability for the debts and actions of the LLC. Other features of LLCs are more like a partnership, providing management flexibility and the benefit of pass-through taxation.
An LLC (limited liability company) operating agreement determines what the financial and working relationships are between co-owners in a company. The agreement is where percentage ownership, responsibilities, rights, and profit distribution are detailed.