Frequently Asked Questions

Will my LLC be member-managed or manager-managed? Why?

Whether an LLC is member-managed or manager-managed is often set forth in the company’s Operating Agreement. Most venture-backed LLCs choose to be manager-managed. The manager-managed structure provides more flexibility. For example, by allowing you to designate only certain of the members as managers, this approach allows some founders of the LLC to be members without needing to be responsible for managing the business (so, for example, you can decide that a technically focused founder will not be responsible for management decisions). This structure also allows you to assign management responsibility to individuals who are not members of the LLC.