Who can be a manager of a Texas LLC?
An LLC can be a manager of another LLC in Texas. This provides additional liability protection to the primary LLC.
Managerial Roles in an LLC
In a manager-managed LLC, members retain ownership but surrender management duties and authority to one or more “managers.” In a member-managed business, all owners have a say and must have a more hands-on role. A manager can be a member or a non-member of the LLC.
Funding an LLC
An LLC can fund another LLC either via an equity investment or a loan. There are considerations for each type of funding to discuss with an attorney.
Managing Member’s Authority
A managing member runs daily operations, makes decisions, and can bind the LLC into contracts and agreements. So a managing member has the roles of both a member and a manager.
Adding a Manager to an LLC
Check the LLC’s operating agreement to see if it authorizes adding a manager. If so, file an amendment listing the new manager’s name and address.
Membership Considerations
In most states yes, but in some states no. This is a “gray area” needing more research, so consult attorneys where forming the LLC.
No Restrictions on Membership Numbers
There are no restrictions on the number of members an LLC can have.