Manager-Managed LLCs
A limited liability company (LLC) manager runs an LLC. An LLC operating agreement outlines manager’s duties. In a manager-managed LLC, only managers enter contracts and control operations. Most states require LLCs to explain management structure in Articles of Organization.
With manager-managed LLCs, owners can be passive investors. Third party managers can be people or entities.
Member-Managed LLCs
In member-managed LLCs, owners have more involvement and make decisions. Single-member LLC owners manage themselves. Members handling management duties receive reasonable pay. Managers have fiduciary duties to the LLC.
Roles and Responsibilities
LLC members can be personally liable for debts. LLC members own the company, while LLC officers include president and chief officers.
Questions
What is the manager of an LLC called?
What is a managing member of LLC?