Membermanaged
Member-managed, sometimes written as member managed, is a governance model used by many limited liability companies (LLCs) in which the members themselves participate in the day-to-day management and operation of the business. It is often the default structure in many jurisdictions and contrasts with a manager-managed LLC, where managers handle operations and members act more as investors.
In a member-managed LLC, each member generally has authority to bind the company in ordinary business matters,
The specific rules are typically outlined in the LLC’s operating agreement and applicable state laws. Fiduciary
Advantages of a member-managed structure include direct control by owners, simplicity, and transparency in decision making.
Compared with manager-managed LLCs, member-managed entities avoid appointing external managers; however they place day-to-day authority in
Member-managed LLCs are common for small businesses, family ventures, or professional practices where members seek active