Who controls an LLC?

An LLC, or Limited Liability Company, is designed to provide flexibility in management and control. The correct answer is that the members or a designated team of managers control the LLC. This structure allows the owners—referred to as members—to either manage the company themselves or appoint managers to handle the operations.

The ability for members to manage the LLC directly is a significant characteristic that distinguishes it from corporations, which require a formal board of directors. Therefore, in an LLC, either all members participate in management or they can choose to delegate that responsibility to a specific group of managers, creating an adaptable governance structure.

State government does not control an LLC in the manner the question implies; rather, it establishes the legal framework under which LLCs operate, including the requirements for formation and compliance. A board of directors is typically a feature of corporations, not LLCs, which is why that option doesn’t apply. Lastly, external shareholders are not relevant to an LLC because the ownership is held by the members, who directly influence the direction and management of the business.