Can the limited liability company be managed by a mix of managers and non-managers?
It is possible to run a limited liability company by a combination of members and non-members. This choice may be appropriate for limited liability companies that desire to have an outsider (non-member) with particular expertise participate in the management decisions. For any number of reasons, the non-member manager may be desired: so that all profits are passed only to members, so that all losses are only sustained by members, or any other reasons specific to your particular business situation. Again, there is a special tax situation that may arise regarding those members who do not participate in the management of the company. They may avoid paying self-employment taxes on their share of the company profits if they work for 500 hours or less at the company’s business. If one or more of your members fall into this category, a competent tax professional should be consulted.
