Most of the limited liability company shareholders must take active roles in managing the company.

Question

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Unlike a partnership where all partners are expected to have an active role in managing the company, in a limited liability company (LLC), the shareholders can choose to appoint a manager to run the company or take on management themselves. Shareholders who are not involved in management typically have limited liability and are only liable for the company's debts to the extent of their investment.

Most of the Limited Liability Company Shareholders Must Take Active