A LLC can either be a Term LLC or an At Will LLC.
A Term LLC has a specific lifespan or Term.
The existence of a Term LLC will not be affected by the withdrawal or disassociation of one of its Members.
The Term, or lifespan, of a LLC may be specifically defined or it may be triggered by some event.
For example, a Term LLC can state in its formation documents that the Term is a specific number of years or that the Term ends on a specific date.
Although a Term LLC has a designated length of existence, the LLC can still operate past the end of the Term.
A Term LLC that continues to do business past the end of its Term will become an At Will LLC.
An At Will LLC does not specify a Term. Instead, the LLC operates indefinitely.
Unlike a Term LLC, in an At Will LLC , the dissociation of a Member (owner) of the LLC will dissolve the LLC unless a specified percentage of the remaining Members agree to continue the business of the LLC.
The specified percentage of members required to approve the continuation of the business is indicated in the operating agreement of the LLC.