LLC members have more flexibility than corporate shareholders to alter their legal arrangements with respect to one another, the entity, and with outsiders.

Question

Quizplus · Accepted Answer

This is because LLCs are typically governed by an operating agreement, which allows for greater customization of rights, responsibilities, and distributions among the members. In contrast, corporate shareholders are subject to more rigid statutory requirements and corporate bylaws.

LLC Members Have More Flexibility Than Corporate Shareholders to Alter