A Limited Liability Company in which the owners, called members, appoint one or more managers to run the day-to-day operations instead of managing the business themselves.
What is a Manager-Managed LLC?
In a manager-managed LLC, the members delegate the responsibility of handling daily business decisions and operations to designated managers. These managers can be members of the LLC or outside individuals hired for their expertise. The members retain ownership and voting rights on major company decisions, but the managers take on the role of executing business strategies, overseeing employees, managing finances, and signing contracts on behalf of the company.
This structure is often chosen when some members prefer to act as passive investors rather than be involved in the day-to-day management. It can also be useful when the business needs professional management or when there are many members, making direct involvement impractical.
The roles, powers, and limitations of managers are typically outlined in the LLC’s operating agreement. For non-U.S. owners, a manager-managed LLC can be beneficial if they want to appoint a U.S.-based manager to oversee operations locally while they maintain ownership and decision-making power on significant matters.
