A method for negotiations between various entities of a wireless local area network (WLAN) including negotiations between controlling nodes (CNs) and wireless access points (WAPs) and negotiations between WAPs is disclosed. These negotiations are used for the purpose of establishing the capabilities of the various entities, determining how such capabilities may be optimally divided among the negotiating entities and then dividing the capabilities among the entities based on this determination. The capabilities include those required for the operation, control and management of the WLAN entities and the encompassing WLAN. The disclosed method introduces means for flexibly accommodating the varying degrees of differences in capabilities among the WLAN entities between the WLAN entities including dynamic changes in WLAN topologies.