Does an LLC have a Board of Directors? / What is the Difference between a Member-managed and Manager-managed LLC?
An LLC’s Articles of Organization ask to designate between one of two types of management structures. An LLC can either be Manager-managed, or Member-managed. If an LLC is Manager-managed, the power and authority of the company’s management lies within its Board of Managers, which is similar to the Board of Directors of a Corporation. If an LLC is Member-managed, there is no Board of Managers, and the LLC is directly managed by its Members (the owners).
An LLCs Articles of Organization ask to designate between one of two types of management structures. An LLC can either be Manager-managed, or Member-managed. If an LLC is Manager-managed, the companys management lies with its Managers, which is similar to the Board of Directors of a Corporation. If an LLC is Member-managed, there is no Board of Managers, and the LLC is directly managed by its Members (the owners). Either type of management (Members or Board of Managers) can delegate power and authority to the companys officers. If the management does delegate authority, it will retain the responsibility to oversee the affairs and activities of the company.
