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LLC members have certain rights, such as voting on decisions that affect the LLC. The term "member" refers to an individual or an entity that holds a membership interest in a limited liability company (LLC). The members own the LLC, just as shareholders own a corporation. But the rights and responsibilities of LLC members are very different that corporate shareholders. LLC members can directly manage the company and can receive allocations of revenue, tax benefits, and losses that differ from the percentage of their ownership interests. The LLC operating agreement should define the scope of the members' rights and responsibilities. If it does not do so, the default provisions of the formation state's LLC laws will control.
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