Introduction to LLC Ownership and Management
A limited liability company (LLC) is a business entity that combines personal asset protection with partnership tax advantages. The LLC owners manage the company or elect managers.
LLC Bank Account and Documentation Requirements
An LLC bank account provides financial separation between personal and business finances. The required documents often include the LLC Certificate of Formation. Call ahead to confirm bank specific requirements.
Member-Managed vs Manager-Managed LLCs
In a member-managed LLC, all members participate in decisions and management. In a manager-managed LLC, elected member(s) or non-member(s) run the business.
Ownership and Management Structures in LLCs
LLC members can choose to actively manage the company or designate managers for day-to-day responsibilities. Manager-management is suitable for passive investors or to streamline decision-making processes.
Determining Roles in LLC Ownership
Members can take an active role in daily operations or appoint managers to handle responsibilities. External managers can also be hired.
Decision-Making and Management in Member-Managed LLCs
In a member-managed LLC, all members participate in the decision-making process, voting, and approving contracts.
Appointing Managers in Manager-Managed LLCs
In a manager-managed LLC, managers handle daily operations and administrative tasks. External managers can be hired if needed.