How is a limited liability company (LLC) managed?
A. 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 LLC. 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.
A. 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 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 LLC. Member management is the normal default rule of state law. If managers are not selected in the articles of organization, the members will direct the affairs of the LLC.
A. 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 LLC. 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. Top of page Q. Should I choose a limited liability company (LLC) or an S corporation? A. While the S corporation and LLC both have pass-through taxation, the S corporation lacks the flexibility of an LLC in allocating income to the owners. An LLC may offer several classes of membership interest while an S corporation may only have one class of stock. Any number of individuals or entities may own i
