What is the difference between a member managed and manager managed LLC?
Actually, less than what you would think. LLC’s in Arizona can be member managed or manager managed. Member managed means that the owners will be responsible for management of the company. When you think of a manager-based LLC, you will usually envision a company where passive investors are the members and where non-owners handle company operations and management. But a manager-managed limited liability company can exist where there is only one owner, who is also designated as the sole manager. A manager is not necessarily an owner, but can be. With a manager-managed LLC, the members do not have control over the LLC’s activities – the managers do. Control of the LLC is usually very important to the owners. With member-managed companies all owners have control over the company. The operating agreement can distribute the ratio of their control. The point being is that you should not get too wound up in worrying about terminology with member-managed or manager-managed limited liability co
