GETTING STARTED ENTITY - Adviser Formation   - Adviser Organization Checklist   - C Corporation   - Federal Employer Identification   - Number   - General Partnership   - Limited Liability Company     - Setting Up an LLC   - Limited Liability Partnership   - Limited Partnership   - S Corporation   - Sole Proprietorship - Hedge Fund Formation - Registration - Types of Advisory - Business PERSONNEL - Investment Adviser - Representatives - Other Registrations . Limited Liability Company A limited liability company (LLC) is a type of business entity form with some characteristics that resemble a corporation and other characteristices that resemble a partnership. An adviser can be formed as a LLC or it can form an investment vehicle as an LLC. The holders of interests in an LLC are called "members" which are analogous to partners and shareholders. The LLC is formed by filing an Articles of Organization (the name varies from state to state) with the state where the LLC will be organized. Members draft an operating agreement which governs how the LLC will operate and the rights and obligations of the members. Key benefits of the LLC form are: Its members are not personally liable for the debts of the LLC; It is taxed as a partnership (i.e., there is no double taxation); and Some or all of its members can manage its operations (in contrast to a limited partnership whose members may not take part in management).