The creation of an LLC includes filing the Articles of Organization, similar to the process of filing the Articles of Incorporation of a Corporation, with the Secretary of State and then drafting an Operations Agreement either just prior to or immediately after the Articles are filed.
Unlike a regular Corporation, LLCs have members not shareholders. The members may elect not to have a manager(s) in which case the members themselves would have a direct say in the daily running of the company. The members may also elect to have Managers who manage the company. The Manager(s) of the LLC maintain a similar position to the Chairman of the Board of a Corporation.
No one can become a member and a membership can not be transferred without the consent of the members having a majority interest, unless the Articles of Organization indicate otherwise.
Not sure which entity is right for you? Take a look at our LLCs vs. Coroprations chart or talk to us directly for smart advice.