How Do I Change My LLC From Member Managed to Manager Managed? Manager-Managed vs Member-Managed

The main difference between manager-managed and member-managed LLCs lies in the roles of designated Managers and active Members.

Setting Up a Member-Managed Structure

A member-managed LLC offers simplicity and collective control over company decisions.

Creating a manager-managed LLC involves more complexity and may require third-party involvement or designated members as Managers.

In a manager-managed LLC, only managers are authorized to make management decisions and bind the LLC to contracts.
The non-managing members don’t have a say in the business management.
In a member-managed LLC, the owners have collective control over company decisions.
The advantage of a member-managed LLC is simplicity with all decisions under the authority of members.
Business owners can change the LLC management structure by amending the articles of organization and following the operating agreement rules.
Most LLCs default to member-managed until a different structure is designated.
Every LLC needs a manager to make operational and strategic decisions.
Consult with an attorney when deciding between member-managed and manager-managed structures.
To amend your LLC articles of organization, file an article of amendment with your secretary of state.
Changing the management structure requires amending the articles of organization and following company policies.
A manager may be another LLC or corporation unless state law prohibits certain types.
Adding an LLC member involves amending the operating agreement, often requiring unanimous approval.
In a Manager-managed LLC, designated Managers have the authority to run the business and day-to-day operations.