How is an LLC managed?
An LLC can be either member managed or manager managed. The initial members (owners) can decide whether they, as members, want to each be responsible for managing the LLC or whether they want to set up a Board of Managers (manager managed) and elect persons to be managers similar to the way a corporation is managed by its Board of Directors.
A. An LLC may be managed by either its members (owners) or by selected managers. If the LLC is to managed by its members, it operates much like a partnership where each member has an equal say in the decision making process of the company. If the members choose to have it managed by a manager they can do so. The manager(s) would then be in charge of the affairs of the corporation. Member management is the default rule of state law. This means that if managers are not selected in the Articles of Organization, the members will direct the affairs of the LLC. The LLC operating agreement should also specify how the LLC is managed.
An LLC may be managed by its members (owners) or by selected managers. If the LLC is to be managed by its members, it operates much like a partnership. Each member has an equal say in the decision making process of the company. If the members choose, they may elect a manager or managers to act in a capacity similar to a corporation’s board of directors. These managers are in charge of the affairs of the corporation. Member management is the normal default rule of state law. This means that if managers are not selected in the articles of organization, the members will direct the affairs of the LLC.
An LLC can be either “member managed” or “manager managed.” The initial members (owners) can decide whether they, as members, want to each be responsible for managing the LLC or whether they want to set up a Board of Managers (manager managed) and elect persons to be managers similar to the way a corporation is managed by its Board of Directors.
