"Manager" Managed LLC

Unless there is a good reason not to, I recommend both Single Member LLCs and Multi-Membered LLCs be organized as “manager managed” rather than “member managed”.

I recommend designating all LLC owner/members as managers with the same power they would have had as members in a “member managed” LLC. This helps LLC owner/members focus on the separate and distinct legal status of the LLC and raises the level of LLC organizational sophistication which may bolsters an argument against law suits attempting to pierce LLC liability protection. Further, in Single Member LLCs “manager” managed status is necessary for the use of the Potential Manager provision, which I recommend.

“Form” LLCs always have two sets of Multi-Memebr LLC Operating Agreements, one “manager” managed and one “member” managed, which one is chosen is upto the organizer.