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What is a Member-Managed LLC?

Posted by Jonathan Krems | Oct 26, 2021 | 0 Comments

In this week's Freedom Friday blog and email newsletter, I want to talk about a frequent topic that comes up with a prospective client when they want to start an LLC, or restructure their LLC, and that is what is a member-managed LLC.  LLCs are either managed by their member(s), or by their manager(s).  So, in today's Freedom Friday blog and email newsletter, I want to answer the frequently asked question what is a member-managed LLC.

First of all, the owners of an LLC are called “members.”  A single-member LLC is an LLC with just one member, or owner.  Similarly, a “multi-member” LLC has more than one owner or member.  However, an LLC can either be member-managed or manager-managed.  So, if an LLC is member-managed, then all of the members (owners) of the LLC are involved in the daily business operations of the company.

Member-managed LLCs are the most common, and most single-member LLCs are member-managed.  In fact, member-managed LLCs are a default option if your LLC's operating agreement does not designate a manager for the LLC.  If all the members (or owners) are going to be actively involved in the management and operations of the LLC business, then you should likely choose a member-managed LLC for your small business.  Almost all single-member LLCs are member-managed, possibly by default, at least when they start out.

As always, it best to consult with a business attorney before deciding if your LLC should be member-managed or manager-managed.  Many attorneys, including myself at Liberty Legal Solutions, LLC, charge a reasonable flat fee to help set up your LLC and draft your Operating Agreement.  The costs of paying an attorney when starting your business will likely save you time and money and make sure your business gets started on the right foot.

If you are interested in starting a small business anywhere in Oklahoma, or if you have a small business and you're looking to grow, please contact me at [email protected] to schedule a FREE strategy session.

For more information about Liberty Legal Solutions, LLC, please visit our website at

About the Author

Jonathan Krems

Jonathan is the Founder and Managing Attorney of Liberty Legal Solutions, LLC, a law firm dedicated to building, protecting, and defending the business and personal interests of our clients in Oklahoma.  Jonathan's primary practice areas are business law, contracts and agreements, business liti...


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