LLC - LP FAQs Back to All FAQs

What is a LLC member & a LLC manager?

In an LLC (Limited Liability Company), a member is an owner of the company, and a manager is a person or entity designated to manage the LLC's day-to-day operations.

A member of an LLC can be an individual, corporation, or other entity that owns a membership interest in the company. In a member-managed LLC, the members have the authority to manage the company and make decisions on behalf of the LLC. In a single-member LLC, the member has full control over the company and makes all the decisions.

A manager of an LLC can be an individual or entity (such as another LLC or corporation) appointed by the members to manage the LLC's affairs. In a manager-managed LLC, the members delegate the management authority to the designated manager(s), who have the authority to make decisions on behalf of the LLC. This structure is often used in larger LLCs, where the members may not have the time or expertise to manage the LLC's daily operations.

It's worth noting that a member can also serve as a manager in an LLC. In fact, in many small LLCs, the owner(s) may serve as both member and manager, making all the decisions for the company. The operating agreement, which is a legal document that outlines the ownership and management structure of the LLC, will specify the roles and responsibilities of the members and managers.

Is this helpful? Rate It

Select Your Rating Excellent! Very Good Good Fair Poor

Get Started