How to Change the Management Structure of an LLC
- A manager-managed LLC means the members hire someone to manage day-to-day operations. To change management structure from members to managers, follow operating agreement rules and amend articles of organization.
Member-Managed vs. Manager-Managed LLC
- In a member-managed LLC, the owners listed run operations and have voting rights per the agreement. Benefits include no need for passive members to participate and no hiring costs.
- The choice of member or manager managed impacts day-to-day operations, so consult an attorney.
Changing Ownership and Management in an LLC
- To add an LLC member involves amending operating agreement, bringing in the new member.
- If you had an attorney draw up your Articles of Organization, you may want to consult with them on how to follow the buy-out provision and change the ownership of your LLC.
- Typically, changing the ownership arrangement of the LLC takes preparation of a buy-sell agreement.
LLC Business Structure Considerations
- The business structure for your company is one of the most important decisions you’ll ever make. However, you can change the structure at any time.
Filing Amendments and Articles of Organization
- To amend your LLC articles of organization, you must file an article of amendment with your secretary of state (or equivalent state agency).