We frequently receive questions from clients about the LLC statute, and in particular, the difference between a managing member and a manager-managed LLC.
Limited liability companies may be member-managed or manager-managed. Member-managed is the simplest structure, and it simply means that every member has the authority to act on by and behalf of the business (LLC). These entities are identified on sunbiz.org as MGRM.
If all of the members of a limited liability company do not have the authority to manage or act on behalf of the business entity, then the limited liability company will be “manager-managed.” These entities are identified on sunbiz.org as MGR. A manager is given authority usually via written agreement or declaration of authority from the LLC to act on behalf of the LLC as a manager.
Please contact the firm to determine the correct business structure for your needs in light of recent changes to the Florida Business Landscape.
See the statute: http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0605/0605.html