How is a LLC organized and managed?
A LLC is owned by its members vs. shareholders in a corporation or partners in a partnership. A member’s ownership of an LLC is represented by their “interests” , just as partners have “interest” in a partnership and shareholders have stock in a corporation. A LLC may be managed by its members (owners) or by managers. If the LLC is to be managed by its members, it operates like a partnership, with each member having an equal say in the decision making process of the company. If the members choose to elect a manager or managers, then the managers will be acting in a capacity similar to a corporation’s board of directors or the general partners of a limited partnership. These managers are in charge of the overall affairs of the LLC. Member management is the normal default rule of state law. In other words, if managers are not selected in the articles of organization the members will direct the affairs of the LLC. Also, if the articles do not name the members or managers of the LLC, the O
