Learning Center
Everything you need to know about Corporations, LLCs and Trademarks.
Learning center
Everything you need to know about Corporations, LLCs and Trademarks.
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In-Depth Incorporation FAQ
Does an LLC have a Board of Directors? / What is the Difference between a Member-managed and Manager-managed LLC?
« Do the Board of Directors and the Shareholders have to be different people? Do the Managers of an LLC have to be different people from the Members (owners)? »
An LLC's Articles of Organization ask to designate between one of two types of management structures. An LLC can either be Manager-managed, or Member-managed. If an LLC is Manager-managed, the power and authority of the company's management lies within its Board of Managers, which is similar to the Board of Directors of a Corporation. If an LLC is Member-managed, there is no Board of Managers, and the LLC is directly managed by its Members (the owners).
Either type of management (Members or Board of Managers) can delegate power and authority to the company's officers. If the management does delegate authority, it will retain the responsibility to oversee the affairs and activities of the company.
Either type of management (Members or Board of Managers) can delegate power and authority to the company's officers. If the management does delegate authority, it will retain the responsibility to oversee the affairs and activities of the company.
