a delaware llc can be very flexible when it comes to preserving ownership in the family business you’ve worked so hard to create. the fundamental terms of an llc’s ownership, operation and management are set forth in its llc operating agreement. a carefully drafted llc operating agreement can help to ensure a smooth transition of control after the death of a key member, making the llc an excellent option for preserving ownership in a family business. it is important to remember that an llc operating agreement is not filed or otherwise disclosed to the state of delaware or the delaware division of corporations, nor is it part of any public record. traditionally, llc members who receive a percent of the company’s income will receive a k1.