A multi-member LLC (also known as a “Member-Managed LLC”) is a limited liability company that has more than one owner, but no manager. Instead, the owners perform the day-to-day operation of the LLC. A company agreement with several members of the LLC establishes in writing essential information about those LLCs, for example. B the powers and duties of the members. A corporate LLC agreement is essential for an LLC with multiple members, as it is the LLCs that are most likely to suffer from internal disputes. As a reference, people often cite LLC company agreements: first, the LLC structure minimizes the personal legal liability of its members. This is important in case your business is facing litigation for any reason. Setting up and managing a multi-member LLC is not difficult. Unlike setting up a business, there are not many formalities or requirements. Just fill out the right documents, pay your fees, get approved by your state and voila – your company becomes an official limited liability company! LLC is a flexible business structure. There is no limit to the number of members you can have. And there are no restrictions on how you divide the ownership of the business.
Hello, Samantha, thank you for the kind words. And I`m glad our site was so helpful. Before I deal with the theme Manager-managed vs. Member-managed, I would just like to add a note saying that she is the organizer LLC and that she keeps your documentation in order. Since you are the one making the LLC for your son, you are the organizer of the LLC and sign the Organization`s California Articles. Your son`s name is not on the organization`s by-articles because California does not require member information in this form. So, after signing as an organizer and approving the LLC, you can sign a statement from the LLC organizer instead of the organizing meeting, resign as an LLC organizer, and appoint your son as a member. In addition, your son should sign an LLC company agreement.
When it comes to Manager-Managed vs Member-managed, I think you could go both ways. You can choose to have the LLC managed as a manager in the organization`s by-articles.. . .