Member-Managed or Manager-Managed

Member-Managed or Manager-Managed

One of the first decisions you will need to make is whether your LLC will be member-managed or manager-managed. The question is whether all the members will have an equal control of the company's business or whether there will be one or more people who control the business while the others are mostly silent.

  • Member-managed. If the LLC is being formed by one person or a small number of people who will operate as equal partners, you should consider being a member-managed company.
  • Manager-managed. If the LLC will have one or more persons who will make all the business decisions and members who are not active in the business except to put up money, then you should consider being a manager-managed LLC.