Someone has to make the decisions on behalf of Mr. LLC. There are mainly two ways to structure the LLC’s management: member management or manager management. Here’s what these two management systems mean.
If all of the members have the authority to make Mr. LLC’s day-to-day decisions and are authorized to act on his behalf, then Mr. LLC is member managed. In this structure all of the members generally have equal management rights.
If one or more members don’t want management responsibility or if the members want to limit the power of some of its members, then the members appoint one or more of the members or a non-member manager to make Mr. LLC’s day-to-day decisions. This is called manager-management.
If there is only one member, then that member can choose member management. But it’s generally a good idea for that owner to chose herself to be the manager and to designate the LLC as manager-managed.
There’s a lot of flexibility with the management of Mr. LLC. You can also structure it to be like a corporation with a board of directors and officers. You can also develop management committees. You can give your manager whatever title you want to give him or her. You may also pay the manager a salary and other benefits separate from the profit the member manager earns from Mr. LLC.