What is the difference between a member managed and a manager managed governance structure?
A limited liability company (LLC) can be either member managed or manager managed. The initial LLC members (owners) can decide whether they, as LLC 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. Members can be elected as Managers. This structure is usually decided upon and documented in the LLC Operating Agreement.
A Virginia limited liablity company (LLC) can be either “member managed” or “manager managed.” The initial LLC members (owners) can decide whether they, as LLC 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. This structure is usually decided upon and documented in the LLC Operating Agreement of the Virginia LLC.
