“LLC” stands for limited liability corporation. An LLC is an entity which can be formed by filing a Certificate of Formation with the Texas Secretary of State. An LLC is comprised of members, which are individuals or entities who own an interest in the LLC.
LLCs are typically used to run businesses, such as real estate investment. An LLC can provide legal protection against liability for a business person, and can be used to hold assets such as rental properties. LLCs are simple to run and a great structure for a small business.
The LLC governing structure is either manager-run or member-run. In a member-managed LLC, the members have authority to act on behalf of the LLC and make decisions for it. In a manager-managed LLC, specifically designated managers have that authority. Whether the LLC is run by members or managers is outlined in the operating agreement for the LLC.