If you have questions about a limited liability company or a single-member limited liability company, our Arlington business lawyers can discuss business structure with you. Your company can be subject to either management by the members or by the managers. If you want a management-member structure, you need to specify this in your formation documents, or it could be set up as a member-managed LLC.
In an SMLLC run by managers, the manager is a separate role from the owner. However, you can still own and manage your own company although you can designate a separate manager if you so choose. On the other hand, the owner automatically serves as the manager in a member-managed SMLLC.
The manager has specific responsibilities that typically include signing contracts, hiring and firing, and managing daily affairs for the company. An owner generally takes care of other matters, such as amending any operating agreements, liquidating company assets, dissolving the LLC, and handling any business outside the normal course of action. The owner needs to give permission to handle any of these affairs although they can be appropriately delegated to a manager.
The manager-managed SMLLC must be set up as such from the start. The owner-manager can then set up the person or persons they want to run the business. For example, if the business oversees rental properties, they can set up someone to handle daily business mattes, such as rental collection, showing units and handling repairs. Generally, the owner fills that role but might hire employees to help. If the owner becomes unable to handle these affairs or dies, they can set up another person to take over for them.
The legal professionals at Schleifman Law, PLC understand the complexities of your business issues, including LLCs and SMLLCs. Our Arlington business attorney looks forward to talking helping you with these matters.