Describe an LLC and the interest or rights of its members

Answer 1

An LLC (limited liability company) is an unincorporated business association that provides limited liability to all of its owner/members and permits all of its members to participate in the management of the business. It must be formed in substantial compliance with a state's limited liability company statute, which generally requires the central filing of articles of organization in a designated state office. A member has no property interest in property owned by the LLC, but a member does have an interest in the LLC, which is personal property. A member's interest includes two components: the financial interest, which is the right to share profits and losses and to receive distributions, and the management interest, which typically consists of the right to manage, vote, obtain information, and bring enforcement actions.