Is My LLC Member-Managed or Manager-Managed?

by | Feb 23, 2014 | All Up In Yo' Business, General, LLCs, Running Your Business, Single-Member LLCs, Starting a Business

One of the questions that arise when forming an LLC is if the LLC should be member-managed or manager-managed. While it is a fairly simple process to form an LLC in Colorado, choosing between member-managed or manager-managed is where many business people get confused. 

What is the difference?

The owners of an LLC are called “members.” An LLC can either be member-managed or manager-managed.  In a nutshell, this means that either all of the owners of the LLC can be actively involved in the day-to-day business operations (member-managed). Or that some of the owners can be investors only and not have any management responsibilities (manager-managed).

What does this mean?

A member-managed LLC is most common between the two. This happens when all of the members are going to actively participate in the management and operations of the business. Also happens in the case of a single-member LLC.

Member managed differs in management involvement . If you and one partner want to be involved in the management and the smaller decisions that affect the LLC on a daily basis, then member-managed is best. Almost all single-member LLCs will be member-managed, at least in the beginning.

This episode of All Up In Yo’ Business is all about the differences between the two management elections and which one is best for your business.
Check out the full video to learn more!
Contact us today if you need help with your LLC. And be sure to subscribe to our YouTube channel for more All Up In Yo’ Business!)

Learn more about how to form an LLC in Colorado.





  1. DIY: Form an LLC in Colorado | Parker, Colorado Small Business and Estate Planning Attorney | The Law Office of Aiden H. Kramer, LLC - […] D. Management: This is where most people mess it up. So make sure you read this part. Thank you. The owners…
  2. What is an LLC? | Create Resumes | Find Jobs | FastJobz.Com - […] is suitable for smaller companies with a limited number of owners. An LLC can choose to be either member…
  3. DIY: Form an LLC in Colorado | Denver Business Attorney Aiden Kramer - […] D. Management: This is where most people mess it up. So make sure you read this part. 🙂 Thank you. The…

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