BizTerm Definition
Manager Managed
Short Definition
An LLC managed by manager(s) not member(s)
Full Definition

An LLC that is Manager-Managed, is managed by its managers, which are not the members. In other words, the members (owners) have NO management authority unless they are also managers of the LLC. An LLC can be established as a manager managed LLC through the articles of organization, but also can be established as manager-managed through the operating agreement, if the formation state’s statutes allow this. By default, most LLC’s are member-managed, even if not expressed in the articles of organization.


Often LLC’s will be set up as a manager-managed if the desire is to have members (owners) with no management authority.

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