Continuity of life. Centralization of management. Limited liability for owners. Free transferability of owners' interests. If an LLC has a preponderance of the above factors, i.e., three out of four, the LLC is taxed as a corporate association.
Equal weight is given to each characteristic.
Neither members nor the managers of an LLC are liable personally to LLC creditors. Person acts as LLC without authority to do so. Therefore, this factor will always remain a corporate characteristic. Such assignee has no management rights. Typically, an LLC uses a centralized form of management.