Connecticut Business Attorney Discusses a Member Managed LLC vs. a Manager Managed LLC

Clients ask me as Connecticut Business Attorney, what is the difference between a member managed LLC and a manager managed LLC?

A member managed LLC is much like a partnership, while a manager membered LLC is governed much like a corporation. Think of the manager in a manager managed LLC as a CEO, and the owners are the members that hire the manager to run the business. I advise clients as a Connecticut Business Attorney that in essence, they act as the board of directors in a member managed LLC. In contrast, in a member managed LLC each member and all the members collectively manage the operations and run the day-to-day business of the LLC.

This informational blog post was brought to you by Attorney Eric L. Foster, an experienced Connecticut Business Attorney.