R. Shawn McBride recently spoke about the choices in managing your LLC. Here is the full transcript: https://www.facebook.com/rshawnmcbride/videos/10158329819400514/
Hello, everybody out there. R. Shawn McBride live with you here in Baltimore, Maryland. I wanted to touch base with you on how you should manage your LLC. We’ve been collecting feedback from the community. People have been saying what types of issues they’re dealing with. We’ve been talking a lot about LLCs versus corporations. One of the recent questions we’ve gotten is “How do I manage my LLC?” If you have questions, send them in to me. We’ll get them in the future live episodes to try to answer your questions.
Which management structure is best for your LLC? What works for you? It’s really going to be a personal decision. You need to really figure out what works for your business, how you want to run your business. Do you want to have a traditional board of directors? That is one possibility. Do you want to have management by your sole authority? That would be what we call member managed. Or maybe give yourself the title of manager, have it manager managed. The beautiful thing about an LLC is you get to choose how you manage your LLC. You don’t have to do anything structured a certain way. We talked about LLCs versus corporations the other day. If you run a corporation, you really are tied into having a board of directors unless you do something special. If you’re running an LLC, it is your choice. You get to decide.
The major choices we see all the time are board of directors are in a corporation, sometimes that’s great for a company. Sometimes its member managed, which means the owners of the LLC vote in proportion often to their percentage ownerships, and decide what the LLC does. Another way to manage an LLC is to make it manager managed, and that doesn’t mean it has to be you as the manager. It could be somebody else as the manager – could be a group of managers, but you appoint certain people to manage your LLC.
You really get to choose which of these structures you want. Then, if you want to get more advanced, you could do things like veto rights. Sometimes certain investors will say, “I will give you money for your project or your company, but don’t do certain things unless I authorize it.” So you can set up management where one person has day-to-day authority, but another person has veto rights.
The beauty of the LLC is you get lots of flexibility, so we build the structure around what the client wants. You get to pick the management. Which management’s best? There is no one answer that is best. It’s the one that’s best for you and your situation.
That’s what we’re seeing out there. If you have any other questions, feel free to write in. We’ll be working with you on your topics about business, business management, and business law. Write them in. We’ll get some great content out there for you. Feel free to follow up with me.
This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. This article should not be treated as legal advice to any person or entity. Each case is unique. Past results do not guarantee future outcomes. Freeimages.com/photographer astkam.
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