What is one limitation of ownership transfer in an LLC?

Membership interests in a Limited Liability Company (LLC) typically come with certain restrictions on their transferability. The correct answer highlights that ownership interests may be transferred only with the consent of other members, which is a fundamental characteristic of many LLC operating agreements. This limitation is designed to protect the existing members and maintain the integrity and control of the company.

When establishing an LLC, members often agree on who can be admitted as a new member, which is why the consent requirement is common. This helps to ensure that the new member aligns with the existing members' interests and values, thus preserving the relationships that underpin the LLC’s operation. In contrast, the other options either misrepresent the general characteristics of an LLC or introduce concepts that are not applicable to the ownership transfer process in this type of business entity. For example, ownership in an LLC does not automatically allow for free transfer at any time, and not just managers have the right to transfer memberships—it's contingent on member consent. Additionally, there is no requirement for LLC ownership to become public, which is more relevant to publicly traded corporations.