Question
A public library is looking at the possibility of taking over the running of a medical loan closet that has been previously run by a church.
The library would find a space through a partner, so it would not be on library property.
Answer
Before I answer, let's talk about why a person or business might create an LLC ("limited liability company").
A primary function of an “LLC”[1] is to do exactly what the member has proposed—to create a separate entity designed to hold the liability associated with a particular venture.