Overview of LLC Management:
A limited liability company (LLC) is a legal business entity that provides liability protection similar to a partnership. LLCs can be managed by members or appointed managers.
Manager vs. Managing Member:
Is managing member the same as manager?
Managing member oversees daily management and is also a company owner. An LLC manager is an employee with specific authority granted by the LLC operating agreement or members.
Can a single member LLC have a CEO?
In a single-member LLC, the sole member can hold titles like president or CEO.
Manager-Managed or Member-Managed?
Most states default to member-managed LLCs unless specified otherwise. Member-managed allows owners to act as managers, while manager-managed involves hiring an outside manager.
Member Managed vs Manager Managed LLCs:
LLC management structures include member-managed, where owners operate the business collectively, and manager-managed, where a designated manager handles operations.
Roles and Responsibilities:
Role of a Managing Member:
Managing member oversees business operations, enters contracts, and is responsible for day-to-day management.
Role of a Manager:
An LLC manager is hired to run business operations based on the authority granted by the operating agreement or members.
Manager’s Job in a Manager-Managed Florida LLC:
Managers in Florida LLCs are elected or appointed, with specific responsibilities outlined in the operating agreement.