What is FALSE about a Limited Liability Company? An Articles of Organization must be filed with the appropriate state authority in order to have an LLC. O An LLC can be member-managed or manager-managed. As a general rule a member of an LLC has an equal share to the LLC's profits (and equal responsibility for losses) unless that rule is changed in the LLC's operating agreement. LLCs are primarily governed by the franchise rules promulgated by the U.S. Federal Trade Commission