Member-Managed vs Manager-Managed LLC: Choose Before You Sign
Every operating agreement declares one of two management structures. The default fits most small LLCs; the exception exists for good reasons.
Member-managed (the default)
Every member can act for the company — sign contracts, open accounts, hire. Right for owner-operators and small partnerships where everyone works the business.
Manager-managed
Only designated managers (a member or an outsider) bind the company; other members are passive. Right for investor members, family holdings, or when one partner runs operations and others fund it.
Why it must be in writing
Third parties rely on the agreement to know who can sign. Banks check it; counterparties can demand it. Choose in the generator and the authority language adjusts automatically.
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