This post about manager-managed limited liability companies is based on a Quora question that I answered. Please see Why are not all LLCs manager-managed?
In this post I will refer to California law. I expect that the law of many, if not all, other states is similar.
Default is Member-managed…
The default is that a limited liability company is member-managed. Corporations Code Section 17704.07(a) states: “A limited liability company is a member-managed limited liability company unless the articles of organization contain the statement required by paragraph (5) of subdivision (b) of Section 17702.01.” (more…)
The following are (somewhat edited) an Avvo question and my answer: Q. Is it necessary to file a Form D securities exemption when forming a California limited liability company (LLC) and only issuing an interest to the forming members?
A. The short answer is “no“. The somewhat longer answer is as follows: (more…)