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Q.How is an LLC Managed?
A.An LLC may be managed by its members (owners) or by selected managers. Again, one of the greatest advantages to the LLC is the flexibility it affords.
If the LLC is to be managed by its members, it operates much like a partnership. Each member has an equal say in the decision making process of the company.
By contrast, if the LLC is to be managed by members elected by the members, the managers will act in a capacity similar to a corporation's board of directors. These managers are in charge of the affairs of the corporation.
Management by all the members (member-managed LLC) is the normal default rule of state law, but it is often better to have a manager-managed LLC.
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