You may want a separate compensation and reimbursement agreement for the executive member or external manager. Other states may have similar requirements. Check with your state`s department of affairs (usually the Secretary of State`s office) to make sure you meet all the legal requirements for a company agreement. A limited liability company (LLC) is a business unit that enjoys the attractive characteristics of a partnership and a corporation. It is similar to a corporation in that the risk of liability of individual members is limited to what each member has invested in the company. .