Introduction to LLC Managing Member and Manager
A limited liability company (LLC) managing member is both an LLC owner and someone who keeps the business running. The managerial aspect generally includes having the authority to make decisions and enter into contracts on behalf of the business. In a typical single-member LLC, it is very common for the single member to also be the managing member.
Role of LLC Manager
An LLC manager is a person hired by the members to have the responsibility of running day-to-day business operations. With manager-managed LLCs, passive investors can be included. Member-managed businesses require owners to have a more hands-on role.
LLC Members and Management
LLC members are the owners of the LLC. An LLC manager is an individual, group, or entity chosen by LLC members to manage daily operations of the company.
Can a managing member of an LLC be an employee?
An LLC manager is a person hired by the members to manage the business. LLC members are owners.
Changes in Florida Law Regarding Managing Members
A managing member LLC in Florida is a member assigned with managing the company. However, Florida law removed the concept of managing member. All managing member-managed LLCs are now deemed member-managed. Management authority is placed in the owners.
Financial Operations in LLCs
As a single member LLC, you can pay taxes as a corporation or sole proprietorship. An LLC manager is hired by members to manage daily operations. In a manager-managed LLC, members appoint a manager to run the business. In a member-managed LLC, members jointly make decisions.
Understanding Managing Member in LLC
In a single member LLC, the single member is often the managing member. LLC members pay income tax on profits. Members take earnings, not wages and salaries. An LLC manager receives a salary as an employee.
Conclusion
Florida LLC law removed the concept of managing member. All LLCs are now member-managed. As an LLC owner, you can pay taxes as a corporation or sole proprietorship. But LLC owners cannot receive salaries and wages from their own LLC. Owners pay self-employment tax on LLC earnings.