What is the difference between a Member Managed LLC and a Manager Managed LLC?
A member-managed LLC is where the company is run by one, some or all of its owners/members (as opposed to manager-managed LLCs, which are run by outside managers). Many smaller LLCs tend to be run in this manner because, much like a partnership, member-managed LLCs do not generally have to worry about voting or appointing managers and can simply get down to doing their business. A manager-managed LLC is where the company is run by appointed managers (as opposed to member-managed LLCs, which are run by some or al of the owners/members). While some of these appointed managers may be members, most LLCs typically use outside parties to fill most of their manager slots. Manager-managed LLCs tend to run more like limited partnerships or corporations, and are therefore more complicated – the managers must be appointed, and voting comes into play when the managers are making decisions. While member-management is more commonly used by smaller LLCs, the larger LLCs tend to use this manager-manag
