What can LLC members vote on according to their Operating Agreement?

The correct choice reflects that LLC members typically have the authority to vote on major decisions impacting the LLC as defined in their Operating Agreement. An Operating Agreement outlines the governance structure of the LLC and specifies the types of decisions that require member approval. These major decisions can include amendments to the Operating Agreement, changes to the business structure, the admission of new members, mergers, or dissolutions.

In many cases, the Operating Agreement gives members the discretion to define what constitutes a "major decision," which can empower them to influence the strategic direction of the company. This ability to vote on significant matters is a key aspect of an LLC's member control, distinguishing their rights and responsibilities from those in other business structures like a corporation, where shareholder voting rights may be more strictly defined and regulated.

Options suggesting that LLC members only vote on minor decisions, that they can only vote on decisions made by shareholders, or that they vote on all decisions regardless of the Operating Agreement misunderstand the nature of how limited liability companies operate and the flexibility afforded to members in establishing their governing rules.