What Is the Difference Between a Managing Member and Member in an LLC?

Manager vs. Member Managed LLCs

The main difference between manager and member managed is the ability to have passive investors with manager-managed LLCs. Members must have a more hands-on role in a member-managed LLC.

LLC Members and Managers Overview

  • Member: An LLC member is an owner of that LLC.
  • Manager: An LLC manager is an individual, group, or entity chosen by LLC members to manage the day-to-day operation of the company.
  • LLC members are the owners of an LLC, while the LLC members hire managers to run the operations of an LLC.

Managing Member Role

What is the role of a managing member? A managing member of a company is an individual who has played an important role in the management of the company.


In a Manager-Managed LLC has a different formation structure. It’s like having a corporation, where the Officers are running the show on a daily basis. This can cut down significantly on confusion in cases where you’ve got lots of Members.

The Florida LLC can have more of a challenge attracting investors who would be more interested in a passive role. Managing a business is a job in and of itself, which will require significant commitments from the managing members.

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