An owner of an LLC who has the legal authority to act on behalf of the company.
What is an Authorized Member?
An authorized member is a person who both owns a share of a Limited Liability Company (LLC) and has been formally granted authority to act on behalf of the company. LLCs are typically owned by one or more members, and not all members necessarily have managerial powers. When a member is designated as “authorized,” it means they can sign legal documents, make binding decisions, and represent the company in official matters.In member-managed LLCs, all members usually have this authority by default. In manager-managed LLCs, only specifically named members or appointed managers hold that power. The designation of an authorized member is typically included in the Articles of Organization, Operating Agreement, or a company resolution, depending on the state and internal governance structure.
