3 Things to Know about LLCs in Tennessee
November 8, 2017
K&B represents many business, large and small, and has formed many limited liability companies (LLCs) for clients. Because of their versatility and ability to be customized, LLCs are by far the most common type of business entity being formed today. Here are 3 things you should know about LLCs:
- There are three different types of TN LLCs – member-managed, manager-managed, and director-managed. Member-managed is the most common type, but there are instances where one of the other options might be a better fit for your business, so you should consult a professional before making a selection.
- Terminology – Owners of LLCs are called members and their ownership interest in an LLC is called membership interest. LLCs don’t have stock like corporations do but instead have membership interest.
- You can separate voting rights from financial rights. For example, a member could have 51% of the voting rights but be entitled to 30% of the profit. LLCs are very customizable and that is why they are often a good fit for new businesses.