The term used for an owner of an LLC is “member” and an LLC can have a single member or many members. The difference between the two is fairly obvious, but can be worth addressing. Generally a single member LLC will be managed by that single member, though it is entirely possible that the single member could chose to have a manager run the LLC instead. The single owner LLC generally operates much like a sole proprietorship with the owner exerting full control over the business.
Due to the popular show Game of Thrones, the term “bend the knee” has made its way into public conversations. In the HBO show, the term is basically a submission and a pledge of loyalty to a king or queen. In the real world, the term “bend the knee” has also taken on new significance over the last year. Even if you are not a football fan you probably heard about professional football players kneeling during the National Anthem, which is played before a game is started.
Unlike most of the common business entities that exist today, the LLC has a fairly brief history in the United States. Entities such as partnerships, sole proprietorships and corporations have existed since the founding of the country. The LLC, however, has only existed in a recognizable form for roughly thirty-five years. What, then, led to the creation of this new entity? The single most important reason for the creation of the LLC was what has come to be known as “the tax-shield conundrum.”