Manager Managed vs Member Managed (What's Best for Your LLC?)

[@cjlawvideos]

I hope you liked this video on whether to choose a Member Managed LLC or Manager Managed LLC. For more information related to LLCs, visit my channel here: kzbin.info/door/h-xmIMrn_SM3yax85O9U6A Thank you for watching!

[@redlover5088]

Hi Chris. Very clear, concise and helpful video. I subscribed. Question: As a sole member, manager managed, LLC, can I hold all of the Officer titles as well as "Manager"? If yes, should I sign business documents using the title I believe best represents the proper signatory for each specific document? Of course this would probably result in a multiplicity of business documents signed by me in differing official capacities. Would I be creating a problem for myself? Thanks for your response.

[@cjlawvideos]

Hi. Thanks for watching and for your kind words. I can't give legal advice without being hired, but here are some general things to consider: 1. Yes, you can hold all titles. Just identify in the Operating Agreement that you will serve as the Manager and also hold the title(s) of CEO, etc. Also, I generally have documents signed on behalf of the LLC with the following title: John Doe, Manager & CEO. I add Manager since it is Manager-Managed and the Manager has all rights provided in an Operating Agreement. I add CEO since most parties are familiar with that title as the highest level officer (though Manager would be in the case of a Manager Managed LLC). 2. If you don't have an Operating Agreement which covers this and other important matters for your LLC, please note that a related company of mine is selling legal templates, including a Single-Member Manager-Managed LLC Operating Agreement. It is fully customizable (with directions) and attorney quality, but at a fraction of what you'd pay an attorney (as it doesn't come with legal advice). If you are interested, you can check it out here: bit.ly/Legal-Templates. If you sign up for the newsletter, you will receive a 10% discount. I hope that helps, but let me know if you have other questions. Best regards, Chris

[@user-bm1nd6xv9q]

Hi there, Can the owner of the business be the manager under manager-managed when filling out the LLC application?

[@cjlawvideos]

Hi. Thanks for watching and for your question. Yes, the owner/member of an LLC can also be the Manager in a Manager-Managed LLC. Best regards, Chris

[@renatanash-live.laugh.love118]

Thank you for this information. I especially appreciate that you get straight to the point without being boring and also for including easy to follow examples. Thanks Chris! I will pass this video to some people I know that are starting businesses and are not well versed in the field of business (a little rough around the edges)

[@cjlawvideos]

Thank you Renata. That is great feedback. It means a lot, thank you.

[@essare108]

Thank you. Subscribed as you answered important questions. Please do tell us how manager managed LLC can maintain anonymity (say new mexico, Wyoming etc) as there is mixed information out there on KZbin. Thanks

[@essare108]

Also, if you could guide us on operating agreement & articles of organization for the same line you did earlier

[@cjlawvideos]

Hi. Thank you for your subscription and your kind words. To my knowledge, there are only a few states where the owner and manager can remain anonymous: WY, DE, NM (and perhaps NV). You just have to be careful when you file your annual reports (if required). For example, in WY the annual reports do not require that you to indicate who is the manager or member. However, someone has to sign the annual report. Fortunately, the title/relationship of the signatory is not identified either. If you don't want your name there, you can appoint someone to sign for you. Hope that helps! Best regards, Chris

[@cjlawvideos]

Hi. I have not done a video on articles of organization yet, but here is one I did on obtaining an operating agreement for free: kzbin.info/www/bejne/Y2ixeWxrlrJlj7M. Best regards, Chris

[@censore43]

Chris excellent video thanks for all that knowledge, I would like to ask you, if a mager opens a bank account and at some point dies, can members easily claim this money?

[@cjlawvideos]

Hi Rony. Thank you for the kind words. I'm glad you liked it! Yes, that should not be a problem because you are opening the bank account in the name of the LLC. The LLC will own the funds in the bank account. If the manager dies, then whomever has control over the LLC after the manager passes will be able to control the account. The LLC can appoint the manager as one of the signatories on the bank account along with other people as desired (which can be members or non-members).

[@72capital53]

Great info!!!

[@cjlawvideos]

Glad it was helpful, thanks! Best regards, Chris

[@jaymason2800]

Great job

[@cjlawvideos]

Thank you! I’m glad you found it helpful. Best regards, Chris

[@hazengo]

So if I am purchasing mobile home parks. And lets say the park is owned in VA. I set up Park LLC in VA as member managed. The member would be Wyoming Holding LLC. Wyoming Holding would be manager managed. And the manager should be an external LLC which I appoint myself as member of? That would be to preserve my anonymity.

[@cjlawvideos]

Hi. I cannot give legal advice without being retained, but that sounds like a viable strategy. It really comes down to what needs to be disclosed in VA, and who is the signatory on the VA filings. Note also that a "representative" will have to sign the annual report in WY, but that representative does not have a title as Manager or Member. It can be whomever you appoint for that purpose. Hope this helps! Best regards, Chris

[@HopeProphecy]

Thanks Chris! I'm setting up a single-member Wyoming LLC (operating LLC) that will be owned by a Wyoming Holding LLC. I may have to foreign file in a different state. For anonymity, would it be best to have the the operating LLC member-managed by the Holdiing LLC or manager-managed by the Holding LLC?

[@cjlawvideos]

That's a good question, and the answer depends upon the state in which you will be registering the operating LLC and what information is required by such state in both (i) the foreign qualification/registration and (ii) the annual reports (if applicable). I recommend you search that state's forms and see what they require. And, look at past filings of other foreign LLCs in that state (i.e., initial registration/qualification and annual reports). For example ... in CA, the Initial Application to Register a Foreign LLC does not require you to name either the member or manager. However, the Statement of Information asks to list the manager, but if no manager is appointed, you must list all members. In CA, if I was concerned about anonymity, I would have the Holding Co as the "Manager" of the Operating Company or simply list the Holding Co as the Member. So, I guess it would not matter in CA, but it depends upon the state. -- Hope this helps! Best regards, Chris

[@averagehealthyguy9189]

Thanks, I like the simplistic way you explain the different formation processes.

[@cjlawvideos]

Thank you for the nice compliment, and I'm glad you found it helpful! Best regards, Chris

[@jasonfuessel2961]

Why do you recommend Manager Managed if it just me for the llc?

[@cjlawvideos]

Thanks for watching my video and for your question. I like Manager-Managed LLCs for a number of reasons, even for single-member LLCs. First, I prefer separation between the owner/member and the person signing contracts/documents on behalf of the LLC. I know in your case it would be the same person, but as Manager you are signing in the capacity of Manager of the LLC (just like an officer of a corporation) rather than owner/member of the LLC. I want a wall between the owners of an entity and the entity itself. Also, I want signatories on a document to have a title, and signing as the "Manager" is better in my view. In a Member-Managed LLC, you may have to prove that you are the only member before you sign. Second, while you may start as a single-member LLC, many of my clients have taken on new partners/members as their business has grown. If you are the Manager, and that Manager has certain powers that don't require member consent, then it's less disruptive to your business when you take on additional members. This is just my personal preference based upon my experience, but you are correct that it doesn't make a significant difference if you will always remain a single-member LLC. Best regards, Chris

[@stephanieisom8284]

Great info. Thanks!

[@cjlawvideos]

Thank you Stephanie. I appreciate the kind words! If you have any questions, please let me know. Best regards, Chris

[@myjatinsingh]

Can a person on H1B form a Manager Managed LLC?

[@cjlawvideos]

Yes, you can form an LLC in the US even if you are not yet a resident. For how this might affect your H1B visa (assuming you remain employed and meet other requirements), you may want to consult an immigration attorney. Note that I have videos on how to form LLCs in various states. Best of luck to you! Best regards, Chris

[@truemetaljesus]

Manager managed. ✅ Thank you!

[@cjlawvideos]

I'm glad you found the video helpful ... good choice! Best regards, Chris

[@adriana3489]

Do you provide service to help form LLC with single member. I really could use your help . Thank you 🙏

[@cjlawvideos]

Hi Adriana. Yes, I provide those services. You can send me a message through my website (www.chrisjacksonlaw.com) or send me an email to [e-mail]. I can then arrange a free initial consultation to discuss your needs. Thank you. Best regards, Chris

[@melhoresprodutos8899]

Olá, é Brasileira?SE aind não fez e se quiser posso te ajudar. Abraços.

[@ShilpiDas-n9r]

In a husband-and-wife multi member LLC, can one person be manager and other just be passive member for tax purposes?

[@cjlawvideos]

Hi. Thanks for watching my video and for your question. I cannot give tax advice, so any tax questions should be directed at your CPA. However, yes, one spouse can be the Manager while the other spouse is a passive member. This may result in a tax-savings event for the passive member. Again, please confirm with your CPA. Thank you. Best regards, Chris

[@melhoresprodutos8899]

Hi, for the Buy Tax Deed Property with anonimity do you recommend make the LLC in NM or put the property inside the TRUST? the other option can to be put Property Under Trust and for the more privacity make the LLC in NM your manage manage because the NM do Not ask the Manager and do not ask identity the Proprietary? and the NM do NOT ask for annual report, ok? the What do you think this estrategies?

[@cjlawvideos]

Hi: Thank you for watching my video and for your questions. I cannot give you legal advice without being retained, but yes I like both New Mexico and Wyoming for anonymity purposes. I have a video which goes over my top 3 states for LLCs. NM would have been my #4 in general, as I like it for anonymity. Here is the video: kzbin.info/www/bejne/h5LKaqmio9Vmapo. Note that Wyoming has an Asset Protection Trust which is protective like an irrevocable trust, but unlike an irrevocable trust you have more control over the trust. If you want to know how to form an LLC in WY, here is a video for that: kzbin.info/www/bejne/kJ2QdKuBbLFpfsk. Again, I cannot give you legal advice or tax advice, but I generally recommend having a property held by an LLC. You can always have a trust own the LLC membership interest. And, as you said, NM is great for anonymity purposes. I hope that helps, and I wish you all the best! Best regards, Chris