---
title: "LLC"
type: Legal Term
source: https://casebriefly.com/legal-terms/llc
---

# LLC

A limited liability company (LLC) is a hybrid business entity that combines the limited liability protection of a corporation with the operational flexibility and pass-through tax treatment of a partnership. Members of an LLC are generally shielded from personal liability for the entity's debts and obligations, and the internal governance is primarily determined by the operating agreement, which functions like a partnership agreement in its flexibility. LLCs can be managed by their members directly (member-managed) or by appointed managers (manager-managed), and unlike corporations, they are not required to observe formalities such as annual meetings or board resolutions. Fiduciary duties in LLCs vary by jurisdiction; some states allow the operating agreement to modify or even eliminate default fiduciary duties, while others treat them as non-waivable.

## Related Terms

- limited-liability
- partnership
- piercing-the-corporate-veil
- s-corporation

## Related Cases

- meinhard-v-salmon

## Example

Three software developers formed an LLC with an operating agreement specifying member-managed governance, equal profit sharing, and a provision requiring unanimous consent for any expenditure over $50,000, giving them partnership-like flexibility with corporate-like liability protection.

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Source: [LLC — CaseBriefly](https://casebriefly.com/legal-terms/llc)